According to Cointelegraph: Bitcoin (BTC) could witness a revival of its bull market owing to upcoming shifts in the US economic landscape, anticipates Arthur Hayes, the ex-CEO of crypto exchange BitMEX.
Despite slimming odds for the US Federal Reserve to lower interest rates and stimulate liquidity influx into the economy, Hayes encourages market watchers to shift focus from the Fed to US Treasury Secretary Janet Yellen.
Scheduled for April 29, the US Treasury is set to issue the quarterly refunding documentation highlighting the government's liquidity management strategies. In Hayes' view, the two critical liquidity sources to watch are the Treasury General Account (TGA) and the Reverse Purchase Agreements (RRPs).
"Expect a rally in stonks and most importantly a re-acceleration of the crypto bull market," says Hayes if either TGA gets drained, money gets pulled from the RRP pool, or a mix of both actions occur. This could result in a $1.4 trillion liquidity boost.
Amidst this backdrop, US spot Bitcoin Exchange-Traded Funds (ETFs) continue to gain their audience foothold. Despite marking the most fruitful ETF launch in history, ETF analyst at Bloomberg, Eric Balchunas, doesn't perceive the recent inflow cooling as a cause for alarm.
Cathie Wood, CEO of ARK Invest - a spot Bitcoin ETF provider, foresees an acceleration of this trend despite small allotments so far.