Crypto markets will rally once the US Treasury hits the $ 850 billion goal: Analyst
The Crypto Markets will enter “Up Only” mode only once the United States Treasury hits the target goal of filling the General Account (TGA), the Treasury Department’s bank account, with $ 850 billion, according to Arthur Hayes, co-founder of BitMex’s crypto exchange.
“In complete drainage of this liquidity, can only be resumed,” Hayes write On Friday while the US TGA opening balance crossed $ 807 billion. When the Treasury fills its general account, the funds are usually in line and does not flow into private markets.
However, not all analysts are convinced of Hayes’ prophecy that Watering flows into financial markets When the US Treasury hits its purpose.
“Net Liquidity has a loose relationship with Bitcoin and Crypto at best, though. It thinks it’s a useless banana in my view,” André Dragosch, European research leader in the investment firm Bitwise, Reply.
Many investors and entrepreneurs are expected rising level of liquidity In the coming months as the US Federal Reserve is leaning against the interest rate cutting cycle, which should Boost asset prices Until the liquidity is sinking and the rate of promoting the rate begins again.
Related: Bitcoiners chasing a quick lambo will go for a wipeout: Arthur Hayes
US Federal Reserve rates fall for the first time in 2025, while investors are expecting more cuts
The federal United States reserve Interest rates by 25 points basis (BPS), or a quarter of a percentage, on Wednesday – the first interest rate cut off since 2024.
Bitcoin (Btc) Dipped below $ 115,000 Immediately following the cutting rate, at a classic sell-the-News event.
Nic Puckrin, founder of Education and Media Company Coin Bureau, warned a short term pulling and said the markets were likely to be priced at the cut ahead of the US Central Bank’s decision to drop rates.
Federal Reserve Chairman Jerome Powell said the Federal Open Market Committee (FOMC), a group of 19 officials weighing interest rate decisions, remains divided into additional rates in rate in 2025.
However, 91.9% of traders are expected to have the FOMC cut off interest rates of up to 50 bps at the next meeting in October, according to Data Obtained at the time of this writing from the Chicago Mercantile Exchange (CME) group.
The CME Group is a company that manages the major exchanges of financial derivatives, including futures marketplaces.
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