Arthur Hayes, the co-founder of BitMEX, sheds his insights on why Bitcoin and Ethereum are pumping. Hayes stated that the US Treasury is thinking about supplying the market with more short-term Treasury bills (T-bills) to alleviate a shortage.
Hayes mentioned that money market funds like short-term T-bills are parked in the Fed’s reverse repo facility, which earns a similar yield. He stated that with the $2.2 trillion sitting in RRP if it goes down, the crypto market should brace for a pump.
He highlighted that the buybacks and re-issues of T-bills have not yet happened. Hayes also mentioned that if this is just a trial balloon, it can pop and make way for a reversal.
The crypto market has skyrocketed in the last 24 hours. As per the data from Coingecko, the crypto market cap has regained the $1 trillion benchmark. Several cryptos have displayed single-digit and double-digit gains.
The main gain of 14% was displayed by Ethereum. ETH has touched $1,542 from $1,342 and is currently trading at $1,534.50 (at the time of writing). Bitcoin, which was trading at $19,261.45, has touched $20,682 and is currently trading at $20,652 (at the time of writing). BTC has gained 7% in the last 24 hours. The rally was also followed by other cryptocurrencies, eliminating the bloodshed that was prevalent in recent days.
The post Arthur Hayes Speaks About the Main Reason for BTC and ETH Pumps appeared first on Coin Edition.
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Source: Cryptocurrency - investing.com
