Former BitMEX CEO Arthur Hayes, known for his statements about Bitcoin and cryptocurrencies, made a new post.
Comparing the issuance of US Treasury bills and cryptocurrency prices, Arthur Hayes argued that the impact of issuing treasury bills is not as critical as expected for BTC and crypto, and that BTC and risky assets will start to recover.
Sharing on his Twitter account, Hayes said that the US Treasury General Account (TGA) started to fill up again, but this filling did not affect the US dollar liquidity, which could be the catalyst for Bitcoin to start the rally.
Cryptocurrency and equity markets are typically highly impacted by the US Treasury Department issuing treasury bills to replenish Treasury account balances while pulling US dollar liquidity from financial markets.
However, according to Hayes, the Treasury General Account (TGA) replenishment does not affect risk markets such as cryptocurrencies, as the US dollar net liquidity is at the level of $ 77 billion.
Stating that he plans to buy crypto since the liquidity index of the dollar remains positive, that is, +77 billion dollars, the famous CEO said that if the liquidity index falls negative, he will slow down or stop crypto purchases.
Hayes, who created a special US dollar liquidity index to monitor how the NPL refill will affect US dollar liquidity, made the following statements:
“I created a custom US dollar liquidity index to monitor how TGA filling will affect US dollar liquidity.
Bu endekse göre TGA > 450 milyar dolar olduğunda, bu muhtemelen ABD Hazinesinin borç ihracını yavaşlatacağı anlamına gelir.
It currently has $77 billion net dollar liquidity. This means that NPL refills do not harm risk markets like cryptocurrencies.
From this table it may appear that TGA filling is nothing to worry about for now. Therefore, I will increase the speed of adding cryptocurrency risk to my portfolio. If the dollar liquidity index is negative then I slow down or stop my crypto purchases. "
Right now the net of +$77bn means the TGA refill is not hurting risk markets. It might turn out that TGA refill is nothing to worry about, and then I will speed up the pace of adding crypto risk to my portfolio. If this index goes -ve I will slow down or halt my purchases.
— Arthur Hayes (@CryptoHayes) June 20, 2023
Hayes has said in his previous statements that he is following the TGA filling closely, stating that he believes the real Bitcoin bull market will start in the late third and early fourth quarter of this year.
*Not investment advice.
