BitMEX co-founder Arthur Hayes reveals a major bullish signal for the crypto and stock markets. As macro factors were the primary reasons behind a drop in sentiment in the crypto market recently, Hayes revealed tax receipts from US citizens added $200 billion to the Treasury General Account (TGA) of the U.S. Treasury Dept and the next steps can bring a recovery in the markets.
Arthur Hayes Predicts Re-Acceleration of the Crypto Bull Market
BitMEX co-founder Arthur Hayes in a post on X shared three possible options Treasury Secretary Janet Yellen would consider as the Q2 2024 refunding announcement comes next week. The Treasury General Account (TGA) is restocked at $941 billion as US tax payments added $200 billion to the TGA.
Janet Yellen will trigger a rally in stocks and crypto markets if any of the below three options are considered:
- Stop issuing treasuries by reducing the TGA to zero, which will be a $1 trillion liquidity injection.
- Shifts more borrowing to Treasury bills to remove money from RRP, which is $400bn injection of liquidity.
- Combination of 1 and 2, which will be $1.4 trillion liquidity injection. Treasury could stop long term bonds and issue on bills while running down TGA and RRP.
“If any of these three options happen, expect a rally in stocks and most importantly a re-acceleration of the crypto bull market,” said Arthur Hayes.
The liquidity from people to the government is net negative for risk assets. Moreover, the expected liquidity “boost” in the next coming weeks would be net positive for risk assets. The stocks and crypto markets are anticipated to see a massive rally, especially as a post-halving rally is triggered.
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Bitcoin Price to Rally?
Currently, the major headwinds for the bitcoin price rally are crypto market expiry and PCE inflation data today. The crypto market is expected to see muted price action as traders watch out for these events.
BTC price jumped 1% in the past 24 hours, with the price currently trading at $64,302. The 24-hour low and high are $62,783 and $65,275, respectively. Furthermore, the trading volume has increased slightly in the last 24 hours.
Coinglass data confirms muted action in derivatives trading ahead of $9.4 billion in Bitcoin and Ethereum options expiry on Deribit.
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