BitMEXplatform co-founder and former CEOthe one which… Arthur Hayesshared his views on the latest state of the cryptocurrency market.
Arthur Hayes believes that the rally we are seeing now is a result of Fed policy. The American entrepreneur, in his market assessment on his Twitter account: “As expected, the liquid NPL continues to fall.” used the phrases.
“The Rally Can Continue As Long as the QT Rate Does Not Change”
Arthur Hayes, in this post, the Treasury General Account ( TGA) mentions that it continues to decline as expected. in TGAThis is seen as a positive development in terms of liquidity, as a decrease in the economy could potentially increase the supply of cash and other liquid assets.
Stay focused. As expected the TGA continues to decline which is $liq +ve. This risk rally has room to run unless the Fed wants to alter its pace of QT. pic.twitter.com/wgGmZPbWau
— Arthur Hayes (@CryptoHayes) February 17, 2023
Hayes’in the post shared “liq+” is an abbreviation for liquidity positive. Well in TGAThis means that the decline is seen as a positive development for the liquidity in the financial system.
“FED QT”There is room for this risk rally to continue as long as the coin doesn’t want to change its pace.” in TGA shows that the decline could contribute to a risk rally in financial markets and that this rally could continue without the Federal Reserve’s rate cut. Quantitative tightening ( QT), by selling assets such as treasury securities Federal Reserverefers to the process of reducing the size of the balance sheet.
Explanation, Federal Reserve‘of QT This means that if it slows or reverses its schedule, it could potentially have an impact on the risk rally and financial markets more broadly. This is because, of QTspeed can affect the supply of treasury securities in the market, which in turn can affect interest rates, liquidity and other financial market conditions.
