BitMEX Co-Founder Arthur Hayes Bullish on Bitcoin, Highlights Dollar Liquidity Surge
BitMEX co-founder Arthur Hayes recently expressed his optimism for Bitcoin (BTC) and its potential for growth. In a post on X, Hayes shared his thoughts on the current state of the cryptocurrency market, specifically focusing on the rise in U.S. dollar liquidity. He suggested that as dollar liquidity increases, the price of BTC is likely to follow suit.
Hayes accompanied his post with a chart depicting the net reverse repurchase agreement (RRP) and treasury general account (TGA) balance changes. The chart illustrates the correlation between heightened dollar liquidity and the BTC price. Hayes referred to United States Treasury Secretary Janet Yellen as “Bad Gurl Yellen” in his post, suggesting her role in pumping financial assets.
Meanwhile, crypto analyst dharmafi provided more specific figures regarding the liquidity surge. The post highlighted an RRP of $65 billion and a TGA balance of $35 billion, resulting in a net liquidity surge of $106 billion since November 21. This data further reinforces the impact of increased liquidity on the cryptocurrency market.
While Hayes and dharmafi focus on the connection between dollar liquidity and the BTC price, Yellen, a skeptic of Bitcoin, recently emphasized the importance of compliance in the digital currency industry. Speaking at a meeting of G20 finance ministers and central bank governors, Yellen urged cryptocurrency exchanges to follow regulations and operate within the U.S. financial system.
The $106 billion rise in net liquidity since November 21 has raised questions about its potential effects on diverse asset classes, including cryptocurrencies. With Hayes and dharmafi highlighting the correlation between liquidity and the BTC price, it will be interesting to observe how these dynamics unfold in the coming months.
