Crypto billionaire Arthur Hayes is predicting a potential bull run for Bitcoin in the near future. He believes that the return of liquidity to the US economy, as a result of Janet Yellen’s policies, could have a positive impact on the cryptocurrency market.
While the Federal Reserve’s decision to maintain interest rates may not directly affect Bitcoin and altcoins, Hayes believes that Yellen’s role as Treasury Secretary is crucial. He points to the upcoming release of the United States Treasury’s quarterly refunding documentation on April 29, which will outline strategies for managing liquidity. Within this documentation, Hayes highlights the significance of two liquidity sources: the Reverse Purchase Agreement (RRPS) and the Treasury General Account (TGA).
Hayes predicts that there could be an increase in US dollar printing leading up to and beyond the upcoming Presidential election, resulting in a potential $1.4 trillion liquidity injection. This would stem from a $1 trillion TGA drain and $400 million RRPs. If any of these scenarios occur, Hayes expects to see a rally in stocks and a resurgence of the crypto bull market.
In addition to Hayes’ predictions, there has been a recent slowdown in inflows for Bitcoin ETFs. Eric Balchunas, an ETF analyst at Bloomberg, sees this slowdown as a natural progression for BlackRock’s iShares Bitcoin Trust (IBIT), which is currently the second-largest Bitcoin product by assets under management.
Despite this slowdown, Cathie Wood, the CEO of ARK Invest, anticipates further gains in the Bitcoin market. She predicts that the cryptocurrency could even surpass the $1 million mark.
Overall, the future of Bitcoin and the cryptocurrency market remains uncertain, but with potential liquidity injections and positive predictions from industry experts, there is hope for a bull run in the near future.
