BitMEX Co-founder Arthur Hayes Predicts Bitcoin Surge Amid Dollar Liquidity Rise

Arthur Hayes, co-founder of BitMEX, has expressed a bullish outlook on Bitcoin (BTC) and anticipates a surge in its price. In a post on X, Hayes shared his thoughts alongside a chart depicting net reverse repurchase agreement (RRP) and treasury general account (TGA) balance changes. He playfully referred to United States Treasury Secretary Janet Yellen as “Bad Gurl Yellen.”

Hayes encouraged fellow Bitcoin enthusiasts to remain focused, emphasizing a significant increase in U.S. dollar liquidity. He suggested that Bitcoin’s price is likely to mirror the rise in dollar liquidity, resulting in a price increase.

The accompanying chart illustrated the net variations in RRP and TGA balances, indicating a potential correlation between heightened dollar liquidity and the price of Bitcoin.

Crypto analyst dharmafi shared more specific figures on X, emphasizing an RRP of $65 billion and a TGA balance of $35 billion. The data showed a substantial net liquidity surge of $106 billion since Nov. 21.

The rise in liquidity, as highlighted by Hayes and reinforced by dharmafi’s data, reflects changing dynamics in financial markets. Investors and Bitcoin enthusiasts monitoring liquidity injections may anticipate potential effects on the cryptocurrency market.

While Hayes drew attention to the connection between dollar liquidity and Bitcoin’s price, the $106 billion increase in net liquidity has raised questions about potential effects on various asset classes, including cryptocurrencies.

Janet Yellen, a known skeptic of Bitcoin, recently cautioned cryptocurrency exchanges to comply with the law. Speaking at a meeting of G20 finance ministers and central bank governors, Yellen stressed the importance of compliance in the digital currency industry, emphasizing the need to adhere to regulations for operating within the U.S. financial system.

By Habib Rahman

My professional background is in public relations and I am the founder of Cryptochating. My journey into blockchain technology started four years ago, and I haven't looked back since then. The future of decentralized technology is incredibly fascinating to me, and I am passionate about communicating how it will change the world.

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