”Janet Yellen’s Liquidity Move Could Reignite Bitcoin Bull Market, Predicts Arthur Hayes”
Arthur Hayes, former CEO of BitMEX, suggests that Bitcoin and the crypto market could find an ally in U.S. Treasury Secretary Janet Yellen if a surge in liquidity hits the economy next week.
Bitcoin (BTC) is currently hovering around $62,241, but Hayes believes it could experience a resurgence in its bull market thanks to upcoming shifts in the U.S. economy.
Hayes dismisses the Federal Reserve’s role in stimulating liquidity, suggesting that Yellen’s actions will be more influential. As the U.S. Treasury prepares to release quarterly refunding documentation on April 29, attention turns to the management of liquidity through the Treasury General Account (TGA) and Reverse Purchase Agreements (RRPs).
Hayes explains that draining funds from either the TGA or RRPs could inject significant liquidity back into the economy, potentially totaling $1.4 trillion. He emphasizes Yellen’s significance in this process, suggesting that increased dollar printing could accelerate towards the upcoming presidential election and beyond.
Meanwhile, as Bitcoin ETFs experience a slowdown in inflows, Bloomberg ETF analyst Eric Balchunas downplays concerns, stating that the cooling off was expected given the rapid growth of these products. Despite this, he notes that Bitcoin ETFs continue to attract significant interest compared to other investment funds in the U.S.
As the crypto market awaits Yellen’s next move and Bitcoin ETFs adjust to market dynamics, analysts like Cathie Wood foresee continued growth in crypto investment trends.
Featured image from: analyticsinsight.com