Arthur Hayes, one of the founders of BitMEX, shared insights regarding a potential surge in Bitcoin on the X platform. Accompanied by a chart depicting changes in net Reverse Repurchase Agreement (RRP) and Treasury General Account (TGA) balances, the communication playfully referred to Treasury Secretary Janet Yellen as “Bad Gurl Yellen.”
In his message, Hayes encouraged fellow Bitcoin enthusiasts to remain focused, pointing out a notable increase in dollar liquidity. He suggested that Bitcoin (BTC) is likely to follow the upward trend in dollar liquidity, anticipating a positive movement in its price.
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The presented chart showcased variations in net RRP and TGA balances, hinting at a potential correlation between increased liquidity and a positive trajectory for Bitcoin.
On Twitter, Arthur Hayes, under the handle @CryptoHayes, stated, “Getting my feet did and observing how Bad Gurl Yellen is busy pumping financial assets. Don’t get distracted, $ liquidity is increasing and $BTC will go up as well. This is the chart of net RRP and TGA balance changes.”
In the meantime, crypto analyst Dharmafi provided more specific figures related to platform X. The post highlighted a Reverse Repurchase Agreement (RRP) of $65 billion and a Treasury General Account (TGA) balance of $35 billion, resulting in a substantial net liquidity surge of $106 billion since Nov. 21.
This disclosure indicated a significant increase in liquidity within a short period, reflecting dynamic shifts in the financial landscape. The surge in liquidity, as emphasized by Arthur Hayes, signifies evolving dynamics in financial markets, closely monitored by investors and Bitcoin enthusiasts for potential effects on the cryptocurrency market.
While BitMEX’s co-founder emphasized the relationship between dollar liquidity and Bitcoin’s anticipated trajectory, Dharmafi’s specific data further underscores the impact of the liquidity surge. The substantial $106 billion increase in net liquidity since Nov. 21 raises questions about potential impacts on various asset classes, including cryptocurrencies.
As the crypto community grapples with these observations and changing trends, the influence of key figures like Janet Yellen in shaping market dynamics becomes a central topic of discussion.
Simultaneously, Janet Yellen, known for her skepticism toward Bitcoin, has recently cautioned cryptocurrency exchanges to adhere to the law. In a recent announcement by the U.S. Department of Justice (DOJ), Yellen emphasized the importance of digital currency firms complying with legal regulations.
Yellen stressed the significance of compliance in the digital currency industry, emphasizing the need to adhere to regulations for operating within the U.S. financial system. This statement followed the DOJ’s decision, which found Binance guilty of money laundering and other charges.