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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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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Crypto Market News: The US Department of Justice on Friday said it unsealed charges related to the hacking of cryptocurrency exchange Mt. Gox in 2011. The charges are also linked to the operation of the cryptocurrency exchange BTC-e, it said in a statement. The defunct crypto exchange has recently been in news over the deadline for repayments to its creditors. The new deadline for the repayments has been extended until October 31, 2023. With the news of repayment, it was earlier speculated that the added Bitcoin could actually have a negative impact on the BTC price.
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The Justice Department explained that two Russian nationals have eventually helped cyber criminals in laundering funds worldwide. The two individuals have been charged with conspiring to launder huge amounts of Bitcoin.
DOJ Charges Mt Gox Hackers
Not only did the two Russians were charged with conspiring to launder Bitcoin, one of them was also charged with conspiring to operate BTC-e, another defunct cryptocurrency trading platform that was shut down in 2017. The Department alleged that since 2011, Alexey Bilyuchenko, 43, and Aleksandr Verner, 29, stole a massive amount of cryptocurrency from Mt. Gox, contributing to the exchange’s ultimate insolvency.
“Bilyuchenko and Verner are charged with conspiring to launder approximately 647,000 bitcoins from their hack of Mt. Gox. Bilyuchenko is also charged with conspiring with Alexander Vinnik to operate BTC-e from 2011 to 2017.”
As and when the Mt Gox creditors start getting their payout, whether the Bitcoin price will have a significant reaction remains to be seen.
Also Read: Top Analyst Predicts New Crypto Bull Run ‘Has Just Begun’
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
The U.S. Treasury Department didn’t wait long enough after the debt ceiling deal and decided to start offering Treasury bills immediately. The US Treasury to auction $173 billion in short-term Treasury bills on June 5 to start rebuilding its depleted cash balance, with $1 trillion in T-bills expected by the end of the third quarter. As a result, Bitcoin and the broader crypto market remain under selling pressure.
Bitcoin, Crypto Falling As US Treasury Start $173B T-Bills Auction
According to the U.S. Treasury Department auction schedule, it will auction $173 billion in Treasury bills on June 5. Three treasury bills of 13-week, 26-week, and 44-day worth $65 billion, $58 billion, and $50 billion, respectively to be auctioned today.
Cash reserves in the US Treasury General Account fell to $22.89 billion on June 1 from $635.99 billion in March. Risky assets such as crypto are vulnerable to higher volatility and weaker returns as higher Treasury yields and a strong US dollar will put pressure on Bitcoin and other cryptocurrencies.
The US Treasury is expected to issue $1 trillion in T-bills by the end of the third quarter. It will drain US dollar liquidity from the financial market, increasing the risks of a recession.
The US Treasury yields are already rising, with the U.S. Dollar Index (DXY) breaking above 104 to a high of 104.35 today. Meanwhile, the US stock market futures hint at a flat opening on Monday amid oil and natural gas prices jumping over 2%.
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BTC Price to Fall Below $26,000
BTC price fell 2% in the past 24 hours, with price currently trading at $26,761. The 24-hour low and high for Bitcoin are $26,712 and $27,407, respectively. Also, ETH price slips to the previous support level after rising above $1900 last week. The price trades at $1870, down 2% in the past 24 hours.
The market dynamics now depend on the US Federal Reserve monetary policy decision on June 14. The CME FedWatch Tool shows a 76% probability of the Fed keeping its policy rate unchanged. Fed Chair Jerome Powell and other Fed officials also hinted at a “skip” in June.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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