Cryptocurrency investor Arthur Hayes suggests that Bitcoin might see a revival in its upward price trend if, according to his expectations, there is a resurgence of liquidity in the economy next week as a result of the financial strategies enacted by Janet Yellen.
Bitcoin may experience a resurgence because of recent economic changes in the United States. Hayes suggests that the Federal Reserve’s choice to keep interest rates stable might not have a direct effect on Bitcoin and other cryptocurrencies, but the person to pay attention to now is the Treasury Secretary, Janet Yellen.
Insights from Hayes on Disregarding the Federal Reserve During the Bitcoin Rally
On April 29th, the US Treasury will publish its quarterly refunding documents, which will detail plans for liquidity management. Within this upcoming documentation, Hayes emphasizes the significance of two key sources of liquidity: the Reverse Repurchase Agreement (RRPS) and the Treasury General Account (TGA).
Hayes underscored the vital role Yellen plays in his hypothesis, which predicts a surge in the production of U.S. currency as we approach and move past the forthcoming Presidential election. He pointed out the possibility of an infusion of $1.4 trillion in liquidity, resulting from a combination of a $1 trillion drawdown from the Treasury General Account (TGA) and $400 billion from Reverse Repurchase Agreements (RRPs).
“If any one of these three scenarios occurs, anticipate a surge in the stock market and, even more crucially, a renewed momentum in the cryptocurrency bull market,” Hayes stated. “The Federal Reserve doesn’t matter in this context; Yellen is tough and formidable, and you should definitely regard her with respect.”
Bitcoin exchange-traded funds are experiencing a long-overdue deceleration.
Bitcoin’s rise into the mainstream has fueled an uptrend in its value. Although Bitcoin ETFs have already had the most successful launch ever recorded for this type of financial product, there is still room for them to experience additional expansion.
Bloomberg’s ETF analyst, Eric Balchunas, views the recent decrease in money flowing into BlackRock’s iShares Bitcoin Trust (IBIT) as a normal development.
Currently, IBIT ranks as the Bitcoin offering with the second-highest amount of assets being managed, with the Grayscale Bitcoin Trust (GBTC) being the only one ahead of it.
“According to Balchunas, within the total pool of 10,698 registered funds in the U.S., which consists of ETFs, mutual funds, and CEFs, IBIT stands at the second position for year-to-date fund inflows.”
ARK Invest’s CEO, Cathie Wood, expects the upward trend to continue and forecasts that Bitcoin may exceed a valuation of $1 million.
