Arthur Hayes, former CEO of crypto exchange BitMEX and one of the key ideologists of the crypto market, is sticking to his stance: in his view, Bitcoin is ready to switch into “only up” mode. But this will happen only on one strict condition — and it has nothing to do with blockchain.
Currently, the US Treasury has accumulated $816 billion in its account. According to Hayes, the target level is around $850 billion. Once that limit is reached, the liquidity drain will stop, and funds will once again flow into the markets.
“This will be a pivotal moment for the entire financial system,” Hayes believes. He adds that cryptocurrencies will be among the main beneficiaries thanks to their transparency and independence from regulatory actions — with a special preference, of course, for Bitcoin.
However, Hayes clarifies: “only up” does not mean eternal and nonstop growth. Markets, as we know, can change their mind. But looking at the trends, each new wave of liquidity increasingly strengthens the position of digital assets.
Previously, Hayes had already spoken about the prospect of Bitcoin surpassing the $1 million mark. However, he believes this would require not one, but two catalysts. The second is a change in the Federal Reserve’s board. Arthur Hayes reckons that a new Fed chairman would lead to a complete overhaul of US monetary policy. In turn, cryptocurrencies will eventually be recognized as a mainstream asset class.
So, in the near future, the market will continue closely monitoring the Treasury's balance. Therefore, traders are ready for extreme turbulence and perhaps for soaring Bitcoin’s price.
