Arthur Hayes Ties Next Bitcoin Rally to End of U.S. Government Shutdown

The crypto market has been in a weak state over the last few weeks, with bitcoin (BTC) finally falling below $100,000 on ￰0￱ speculations about the end of the bull cycle, trader and market expert Arthur Hayes has identified an event that could reignite the bull ￰1￱ to Hayes, everything is tied to the ￰2￱ ending its shutdown and releasing liquidity into financial ￰3￱ the ￰4￱ Funds Its Debt Hayes explained in his article titled “Hallelujah” that if the ￰5￱ ensures there is ample cash in the financial system, BTC will hit another all-time high (ATH) before this bull cycle ￰6￱ primary reason the government will continually increase its supply of dollars is to maintain its ability to finance ￰7￱ is because governments are often inclined to prefer issuing debt over raising taxes to fund their ￰8￱ the new administration continues to borrow to finance its agenda, the Federal Reserve’s balance sheet will keep ￰9￱ positive trend in dollar liquidity will ultimately drive bitcoin and crypto prices to new ￰10￱ American entrepreneur detailed how different market participants could drive liquidity by purchasing Treasury bills ￰11￱ participants include money market funds, foreign central banks, the Too Big to Fail (TBTF) Banks, commercial banks, and Relative Value Hedge Funds.

Invariably, government-issued debt will grow the money ￰12￱ normal circumstances, the increasing money supply would have trickled down to the crypto market and kept BTC and other assets afloat. However, the ongoing government shutdown has caused a hitch in that ￰13￱ Liquidity to be Released With the shutdown extending into its second month, the Treasury is borrowing money through its debt auctions but not ￰14￱ revealed that the Treasury General Account is above its $850 billion target by approximately $150 ￰15￱ means that the department is currently maintaining a negative dollar liquidity balance, which will become positive when the shutdown ends and the extra liquidity is released into the ￰16￱ said to expect a choppy market for as long as the government shutdown lasts, as the liquidity drain is one of the primary reasons for the broader ￰17￱ market expert predicted that many traders will dump their bags during this period of market weakness, but insists that it will be a mistake, as the “dollar money market plumbing” is rarely wrong.