By Crypto investor Arthur Hayes believes Bitcoin could experience a bull run resurgence if, as he anticipates, liquidity returns to the economy next week stemming from Janet Yellen’s policies.
Bitcoin could see renewed momentum due to new United States economic shifts. Hayes believes that while the Federal Reserve’s decision to maintain interest rates may not directly impact Bitcoin and altcoins, Treasury Secretary Janet Yellen is now the key figure to watch.
Hayes Insights on “Ignoring the Fed” in Bitcoin Bull Run
On April 29, the United States Treasury plans to release quarterly refunding documentation, outlining strategies for managing liquidity. Hayes highlights the importance of two liquidity sources within this documentation: the Reverse Purchase Agreement (RRPS) and the Treasury General Account (TGA).
As expected tax receipts added roughly $200bn to TGA. Forget about the May Fed meeting the 2Q24 refunding annc comes out next week. What games will Yellen play, here are some options:
1. Stop issuing treasuries by running down the TGA to zero, that is a $1tn injection of… pic.twitter.com/F6AsShYhr4
— Arthur Hayes (@CryptoHayes) April 26, 2024
Hayes emphasized Yellen’s crucial position within his theory, which suggests an increase in US dollar printing leading up to and beyond the upcoming Presidential election. He highlighted a potential $1.4 trillion liquidity injection stemming from a $1 trillion TGA drain and $400 million RRPs.
“If any of these three options happen, expect a rally in stocks and, most importantly, a re-acceleration of the crypto bull market,” Hayes said. “The Fed is irrelevant, Yellen is a bad bitch, you best respect her.”
Bitcoin ETFs Face “Overdue” Slowdown
Bitcoin’s mainstream entry has sparked positive momentum for its price. Despite the most successful ETF debut in history, Bitcoin ETFs have further potential growth.
Bloomberg ETF analyst Eric Balchunas sees the recent slowdown of inflows of BlackRock’s iShares Bitcoin Trust (IBIT) as a natural progression.
IBIT is currently the second-largest Bitcoin product by assets under management, trailing only the Grayscale Bitcoin Trust (GBTC).
While $IBIT‘s daily inflow streak is over at 71 days, it is not done setting records. Here’s a look at ETFs all time by assets after first 72 days on market. The league of own-ness of IBIT, FBTC et al shows how overheated it all was, a breather was overdue tbh @thetrinianalyst pic.twitter.com/CwarhzTOIC
— Eric Balchunas (@EricBalchunas) April 25, 2024
“Out of all the 10,698 registered funds in the USA (including ETFs, mutual funds, and CEFs), IBIT currently ranks 2nd in YTD flows,” Balchunas said.
ARK Invest CEO Cathie Wood also anticipates further gains in this new trend, predicting that Bitcoin can surpass the $1 million mark.
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