BitMEX co-founder Arthur Hayes has revealed a major bullish signal for the crypto and stock markets. As macro factors are the main reason for the recent decline in crypto market sentiment, Hayes believes that tax revenues from US citizens have added $200 billion to the US Treasury's Treasury and General Account (TGA) and that the next It was revealed that this step could bring about a recovery in the virtual currency market. market.
Arthur Hayes predicts re-acceleration of crypto bull market
BitMEX co-founder Arthur Hayes, in a post on The Treasury General Account (TGA) was replenished by $941 billion as U.S. tax payments added $200 billion to the Treasury General Account (TGA).
If Janet Yellen considers any of the three options below, she will cause a rally in the stock and crypto markets.
- Suspending government bond issuance by reducing the TGA to zero would result in a $1 trillion liquidity injection.
- To remove money from RRP, move more borrowing into Treasury bills and inject $400 billion in liquidity.
- Combining 1 and 2 results in a liquidity injection of $1.4 trillion. The Treasury could suspend long-term bond issuance and halt issuance of bills while lowering TGA and RRP.
“If any of these three options occur, we would expect a rise in stock prices and, most importantly, a re-acceleration of the crypto bull market,” said Arthur Hayes.
Liquidity from people to governments is a net negative for risk assets. Moreover, the expected liquidity “increase” in the coming weeks will be a net positive for risk assets. Stock markets and crypto markets are expected to see massive gains, especially as the rally is triggered after the halving.
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Will the price of Bitcoin rise?
Currently, the main headwinds to Bitcoin price growth are today's crypto market expiration date and PCE inflation data. Price movements are expected to slow in the crypto market as traders focus on these events.
BTC price has increased by 1% in the past 24 hours and is currently trading at $64,302. The 24-hour low and high prices are $62,783 and $65,275, respectively. Additionally, trading volume increased slightly over the past 24 hours.
Coinglass data confirms subdued activity in derivatives trading ahead of the expiration of $9.4 billion in Bitcoin and Ethereum options on Deribit.
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