Arthur Hayes’ Bullish Stance on Bitcoin
BitMEX co-founder Arthur Hayes has expressed a bullish outlook on Bitcoin, citing an increase in U.S. dollar liquidity as a key driver. In a recent post, accompanied by a chart showing net reverse repurchase agreement (RRP) and treasury general account (TGA) balance changes, Hayes referred to United States Treasury Secretary Janet Yellen as “Bad Gurl Yellen.”
The Correlation Between Dollar Liquidity and Bitcoin Price
Hayes highlighted the significant uptick in dollar liquidity and its potential impact on Bitcoin prices. He urged Bitcoin enthusiasts to focus on this trend, suggesting a likely increase in Bitcoin value parallel to the rise in dollar liquidity. The chart accompanying his analysis showed fluctuations in RRP and TGA balances, hinting at a possible correlation with Bitcoin’s market movements.
In-Depth Analysis by dharmafi
Further insights were provided by crypto analyst dharmafi, who detailed specific figures in a separate post. According to dharmafi, there has been an RRP of $65 billion and a TGA balance of $35 billion, resulting in a substantial net liquidity increase of $106 billion since Nov. 21. This data underscores the significant changes in financial market dynamics and their possible implications for cryptocurrencies.
Impact of Liquidity Surge on Cryptocurrency Market
The liquidity surge, as pointed out by both Hayes and dharmafi, may have a notable influence on various asset classes, including cryptocurrencies. The $106 billion increase in net liquidity since Nov. 21 has sparked discussions about its potential effects on the crypto market and broader financial landscape.
Yellen’s Stance on Cryptocurrencies
Meanwhile, Janet Yellen, known for her skepticism towards Bitcoin, recently addressed cryptocurrency exchanges. Speaking to Reuters at a G20 meeting, she emphasized the importance of legal compliance for operating within the U.S. financial system, highlighting the need for adherence to regulations in the digital currency industry.
