BitMEX Co-Founder Bullish on Bitcoin, Expects Price Increase
BitMEX co-founder Arthur Hayes is optimistic about the future of Bitcoin. In a recent tweet, Hayes noted the rise in U.S. dollar liquidity and suggested that BTC’s price will follow suit. He shared a chart showing the net changes in reverse repurchase agreement (RRP) and treasury general account (TGA) balances, highlighting the potential link between dollar liquidity and BTC’s price.
Significant Liquidity Surge Raises Questions
Another crypto analyst, dharmafi, provided more specific figures on the liquidity surge. The data showed an RRP of $65 billion and a TGA balance of $35 billion, resulting in a net liquidity increase of $106 billion since November 21. This surge in liquidity has prompted discussions about its potential impact on various asset classes, including cryptocurrencies.
Yellen Stresses Compliance for Cryptocurrency Exchanges
In contrast to Hayes’ optimism, United States Treasury Secretary Janet Yellen recently warned cryptocurrency exchanges to adhere to regulations. She emphasized the importance of compliance in the digital currency industry and the need for exchanges to operate within the framework of U.S. financial regulations.
Hot Take: Bitcoin’s Price Outlook
The rise in U.S. dollar liquidity and its potential correlation with Bitcoin’s price presents an interesting perspective on the cryptocurrency market. While Arthur Hayes believes BTC will increase in value, it remains to be seen how other factors, such as regulatory compliance and market dynamics, will influence its trajectory.
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