The co-founder of BitMEX predicts the rise of Bitcoin amid increasing dollar liquidity
BitMEX co-founder Arthur Hayes is bullish on Bitcoin (BTC). Hayes shared his thoughts on X alongside a chart showing net reverse repurchase agreement (RRP) and Treasury Total Account (TGA) balance changes. Hayes referred to US Treasury Secretary Janet Yellen as “Bad Gurl Yellen”.
On the X-Post, Hayes encouraged Bitcoin enthusiasts to stay focused, which saw a sharp rise in the US dollar. He suggested that BTC would likely reflect a rise in the dollar's currency, causing prices to rise.
The accompanying chart shows the net differences in RRP and TGA balances, which can be seen between higher dollar liquidity and higher BTC prices.
Watching Bad Gurl get busy picking up our financial assets. Don't worry, $ liquidity is increasing and so is $BTC. This is a chart of net RRP and TGA residual changes. pic.twitter.com/l2US0FzlAX
— Arthur Hayes (@CryptoHayes) November 25, 2023
Meanwhile, crypto analyst dharmafi shared more specific figures on X. The post emphasized a balance sheet of $65 billion RRP and TGA of $35 billion, with a significant net liquidity increase of $106 billion as of November 21.
As noted by Hayes, increased liquidity indicates dynamic changes in financial markets. Investors and Bitcoin enthusiasts looking at liquidity injections can speculate on the possible effects on the cryptocurrency market.
While the BitMEX co-founder highlighted the link between dollar liquidity and Bitcoin's value, Dharmafi's data reinforces the impact of increased liquidity. As of Nov. 21, the $106 billion increase in net liquidity has raised questions about its impact on various asset classes, including cryptocurrencies.
Related: CoinFLEX Lenders Unsatisfied With OPNX Setup: Report
Meanwhile, Yellen, a Bitcoin skeptic, recently spoke to Reuters at the G20 meeting of finance ministers and central bank governors, warning kriptovalyutnyh exchanges to comply with the law.
Yellen emphasized the importance of compliance in the digital currency industry, pointing out the importance of following regulations to operate in the US financial system.
Magazine: Big Questions: What's up with all the crypto deaths?
