- Hayes explained about the correlation between dollar liquidity and the price of BTC.
- As the dollar’s liquidity surges, Hayes said, so too will BTC’s value grow.
Arthur Hayes, co-founder of BitMEX, has a positive outlook on Bitcoin. Hayes discussed his views on twitter recently. The co-founder used the moniker with a chart showing shifts in the net reverse repurchase agreement (RRP) and the Treasury general account balance (TGA).
Getting my feet did and observing how Bad Gurl Yellen is busy pumping financial assets. Don’t get distracted, $ liquidity is increasing and $BTC will go up as well. This is the chart of net RRP and TGA balance changes. pic.twitter.com/l2US0FzlAX
— Arthur Hayes (@CryptoHayes) November 25, 2023
While emphasizing a huge increase in U.S. dollar liquidity, Hayes urged Bitcoin backers to maintain their focus on the post. As the dollar’s liquidity surges, he said, so too will BTC’s value grow.
Large Net Liquidity Spike
Net changes in RRP and TGA balances were shown by the co-founder, which may suggest a correlation between increased dollar liquidity and the price of Bitcoin.
At the same time, dharmafi, a crypto analyst, provided additional detailed information. The post emphasized an RRP of $65B and a TGA balance of $35B, with a large net liquidity spike of $106 billion since Nov. 21.
The shifting dynamics of financial markets are reflected in the increase in liquidity, as Hayes has pointed out. Investors and Bitcoin backers noticing liquidity injections might predict future consequences on the crypto market.
The analyst’s numbers back up what Hayes said about the correlation between dollar liquidity and the price of BTC. Concerns regarding the impact on several asset classes, including cryptocurrencies, have been expressed in light of the $106 billion increase in net liquidity since November 21.
The current rise of Bitcoin to $38,544 is a high not seen since May 5, 2022, a span of an incredible 18 months. Bitcoin dropped to below $35,780 over the course of two days before beginning its spectacular rise. The current value is $37,829, representing a 0.42% increase over the last 24 hours as per data from CoinMarketCap.
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