Anticipated surge in $1.4T US liquidity could reignite Bitcoin’s bullish run

Bitcoin (
BTC
) may experience a resurgence in its bull market due to new economic shifts in the United States, according to Arthur Hayes, the former CEO of BitMEX. Hayes believes that Bitcoin and altcoins shouldn’t rely on the U.S. Federal Reserve lowering interest rates to stimulate the economy. Instead, he suggests that Treasury Secretary Janet Yellen is the key figure to watch. On April 29, the U.S. Treasury will release documentation on how the government plans to manage liquidity, focusing on the Treasury General Account (TGA) and Reverse Purchase Agreements (RRPs). By draining the TGA or using RRPs, money can reenter the economy, providing a stimulus for risk assets like cryptocurrencies. Hayes predicts that the U.S. dollar will continue to be printed at an accelerated rate leading up to and after the upcoming presidential election, potentially injecting $1.4 trillion into the economy. Hayes concludes that Yellen is the one to watch, not the Federal Reserve. In other news, although Bitcoin exchange-traded funds (ETFs) have seen a slowdown in inflows, the overall impact of Bitcoin’s mainstream entry is expected to have a positive effect on its price. Eric Balchunas, an ETF analyst at Bloomberg, dismisses the recent cooling of inflows into BlackRock’s iShares Bitcoin Trust (IBIT) as a cause for concern, stating that it still ranks second in year-to-date flows out of all registered funds in the U.S. While the overall allocation to Bitcoin in ETFs remains small, Cathie Wood, CEO of ARK Invest, believes that the trend is gaining momentum. This article does not provide investment advice, and readers should conduct their own research before making any decisions.