Arthur Hayes: The U.S. Treasury Department will announce quarterly refinancing next week, expected to re-accelerate the crypto bull market
PANews reported on April 26 that BitMEX co-founder Arthur Hayes posted on the X platform, saying: "As expected, tax revenue has increased by about $200 billion to the U.S. Treasury General Account (TGA). Forget about the Federal Reserve meeting in May, the refinancing announcement for Q2 of 2024 will be released next week. What strategy will Yellen adopt? Here are a few options: 1. Stop issuing government bonds by depleting TGA to zero, which would inject $1 trillion in liquidity into the market. 2. Shift more borrowing towards short-term treasury bills, which would withdraw funds from reverse repurchase agreements (RRP), equivalent to injecting $400 billion in liquidity into the market. 3. Adopt a combination of options 1 and 2; do not issue long-term bonds but only short-term treasury bills while depleting both TGA and RRP; this would inject $1.4 trillion in liquidity into the market. The impact of Fed can be ignored as Yellen is a formidable figure . If any of these three options occur, it is expected that stock markets will rise and most importantly cryptocurrency bull markets will re-accelerate."
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