Bitmex co-founder Arthur Hayes claimed that the cryptocurrency market will once again enter bullish mode after the US Treasury Department increased its general account (NGA) balance to $850 billion.
In a statement Friday, Hayes added that TGA’s operating balance is above $87 million, “TGA is almost complete with a target of $850 billion. Once this liquidity drawing is complete, “only upward movement can continue.”
The TGA acts as a bank for the Ministry of Finance itself, but the funds transferred to this account do not flow to the private market, resulting in reduced liquidity.
However, Hayes’ ratings have received mixed reviews. André Dragosch, head of European research at investment firm Bitwise, downplaying the claim, saying “Pure liquidity has at best a gentle correlation with Bitcoin and other cryptocurrencies.” I think this is an unhelpful analysis. ”
Cryptocurrency analyst Noodle provided harsher criticism. “Hayes, you’re lying. The end of the TGA doesn’t mean “up”…it just means that the drainage has stopped, and it doesn’t mean that new fluidity has come in. ”
*This is not investment advice.
