Bittime - Arthur Hayes, co-founder of BitMEX, recently expressed an optimistic outlook on the future of the stock and crypto markets. He predicts the potential for a significant price increase (rally) in these two sectors. The price increase was triggered by financial policies to be taken by the United States Treasury Department (US Treasury).
US Financial Policy and Its Impact
Hayes focused on the estimated additional taxes that would go into the US government account, the Treasury General Account (TGA). This additional funding is estimated at around $200 billion. Meanwhile, an announcement regarding the second quarter 2024 tax returns will be released next week.
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3 Additional Fund Policy Options
According to Hayes, how the US Treasury Secretary, Janet Yellen, handles the additional funds will greatly influence financial market conditions. Hayes mentioned three policy options that Yellen might take, namely as follows.
- Option 1 ($1 Trillion Liquidity Injection): Yellen could choose to stop issuing government bonds (treasury) and use the funds in the TGA until they run out. This policy will result in an injection of $1 trillion worth of liquidity into the market.
- Option 2 ($400 Billion Liquidity Injection): Yellen could shift most of the borrowing to short-term bonds (treasury bills) and reduce the use of RRP (Repo Reverse Purchase). The move is expected to inject $400 billion worth of liquidity into the market.
- Option 3 ($1.4 Trillion Liquidity Injection): Yellen could combine options 1 and 2, namely not issuing long-term bonds at all, using only short-term bonds and spending TGA and RRP funds. This combination is expected to be the largest liquidity injection, worth $1.4 trillion.
Impact on Stock and Crypto Markets
Hayes argued that regardless of which option Yellen chooses, the policy would have a positive impact on the stock and crypto markets. It is predicted that the injection of large amounts of liquidity will trigger a rally in the stock market.
Furthermore, Hayes believes that this policy will trigger a re-acceleration of the bullish trend or price increase in the crypto market. This is because the crypto market is very sensitive to changes in liquidity conditions.
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Interesting Perspective
Arthur Hayes' view is certainly an interesting perspective for stock and crypto market players to observe. The financial policies taken by the US Treasury Department have the potential to greatly influence the direction of these two markets. However, it is important to note that this prediction is only one point of view and cannot be used as a guarantee.
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How to Buy Crypto with Bittime
You can buy and sell crypto assets in an easy and safe way via Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.
To be able to buy crypto assets on Bittime , make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. Learn Complete Guide How to Buy Crypto on Bittime .
Monitor price chart movements of Bitcoin (BTC) , Ethereum (ETH) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
Also Read:
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Arthur Hayes: Crypto Volatility Will Decrease, Good Time to Increase Investment!
DISCLAIMER : This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
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