Arthur Hayes Has A Positive View Of Bitcoin Price When TGA Is At $77 Billion

Key Points:

• BitMEX co-founder Arthur Hayes indicated that the effect of the US Treasury Department’s TGA replenishment is not as severe as predicted, and risk assets like as Bitcoin price will begin to rise shortly.
• He intends to purchase cryptocurrency as long as the net liquidity index stays “positive.”

According to BitMEX co-founder Arthur Hayes, the Treasury General Account (TGA) replenishment has had no effect on risk markets since US dollar net liquidity remains at $77 billion. He feels the US Treasury Department’s TGA replenishment is unimportant.

TGA balance was less than $40 billion during the debt limit settlement; it is currently $250 billion. The US Treasury is increasing its account balance while minimizing the effect on financial markets and US currency liquidity.

Arthur Hayes says that the effect will be less severe than feared, and risk assets such as Bitcoin will begin to rebound shortly. He also intends to purchase cryptocurrency as long as the net liquidity index stays “positive.” If the index falls below a certain level, he will reduce or discontinue his purchases. He forecasts that once the TGA balance exceeds $450 billion, the US Treasury would halt down T-bill or debt issuance.

He has developed a unique US dollar liquidity indicator to monitor how the TGA replenishment would effect US currency liquidity.

“U can create using CIX on Bloomie, here is the formula. I look at values of RRP and TGA as of their last print before the debt ceiling bill was signed on June 3rd. If RRP is falling that is +ve for $ liq, if TGA is rising that is -ve for $ liq. I look at the net of the two,” he said.

As the anxiety surrounding the US Securities and Exchange Commission litigation against Binance and Coinbase subsided, the crypto market maintained its upward trajectory. The SEC filed a complaint against Binance on June 5 and Coinbase on June 7, accusing both exchanges of breaching securities laws by selling certain cryptocurrencies for trade.

The SEC and Binance.US have agreed to collaborate on a solution to avert a comprehensive asset freeze at the cryptocurrency trading platform, which the agency has accused of operating unlawfully.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

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