Cryptographic markets will enter only “UP” mode once the United States Treasury reaches its objective objective of filling the General Account (TGA), the Treasury Department Bank account, with $ 850 billion, according to Arthur Hayes, co -founder of Bitmex Crypto Exchange.
“With this complete liquidity drainage, UP can only resume,” Hayes wrote on Friday when the US opening balance. Uu. TGA crossed $ 807 billion. When the treasure is filling its general account, the funds are generally kidnapped and do not flow to private markets.
However, not all analysts were convinced by Hayes’s prediction that liquidity will flow to financial markets once the United States treasure reaches its objective.
“However, net liquidity has a loose correlation with Bitcoin and Crypto at best. I think it is a useless banana in my opinion,” André Dragosch, European head of the European investigation of the Bitwise investment firm, replied.
Many cryptographic investors and merchants anticipate the increase in liquidity levels in the coming months as the United States Federal Reserve leans in the interest rate reduction cycle, which should increase assets prices until liquidity is exhausted and the rate retention process begins again.
Related: Bitcoiners chasing a fast lamb are aimed at an elimination: Arthur Hayes
The United States Federal Reserve cuts rates for the first time in 2025, while investors anticipate more cuts
The United States Federal Reserve reduced interest rates at 25 basic points (BPS), or a percentage room, on Wednesday, the first interest rate cut since 2024.
Bitcoin (BTC) was submerged below $ 115,000 immediately after the cutting of rates, in a classic news sales event.
Nic Puckrin, founder of the Office of Education and Media Coin Bureau, warned about a short -term setback and said the markets probably have a price in the cut before the decision of the Central Bank of the USA. UU. To reduce rates.
The president of the Federal Reserve, Jerome Powell, said that the Federal Open Market Committee (FOMC), the group of 19 officials that weighs interest rates decisions, remains divided into additional rate cuts in 2025.
However, 91.9% of merchants anticipate that FOMC will reduce interest rates of up to 50 BP at the next meeting in October, according to data recovered at the time of writing this writing of the Chicago Mercantile Exchange group (CME).
The CME Group is a company that manages the main exchanges of financial derivatives, including futures markets.
Magazine: Bitcoin to see ‘a great more thrust’ at $ 150K, the ETH pressure builds: commercial secrets
