Bitcoin
Bitcoin
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Bitcoin price traded sideways after rising on the eve of its four-year halving history thanks to the launch of a fleet of spot Bitcoin exchange-traded funds (ETFs) on Wall Street that may just to start.
Now, as Congress considers a new crypto bill described as a “huge disaster,” U.S. Treasury Secretary Janet Yellen, former Federal Reserve chair, could drop a $1 bombshell next week 000 billion dollars in bitcoins and crypto.
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US Treasury Secretary Janet Yellen was declared the most important person to watch when she … [+]
“Forget the Fed meeting in May, the [second quarter] the refund announcement will be released next week… if any of these three options come true, expect a rally [stocks] and above all a re-acceleration of the crypto bull market,” legendary crypto trader and founder of the Maelstrom investment fund Arthur Hayes posted on X, referring to the US Treasury General Account refinancing deadline on May 1 .
“What games will Yellen play, here are some options: 1. Stop issuing Treasuries by reducing the Treasury’s general account to zero, which amounts to a $1 trillion liquidity infusion 2. Shift more borrowing into Treasury bonds, removing money from a reverse repurchase agreement, a $400 billion liquidity injection. 3. Combination of 1 and 2. do not issue long-term bonds, only bills and exhaust the Treasury general account and the reverse repurchase agreement at the same time, which is a $1.4 billion injection repurchase agreement. of liquidity.”
The Treasury General Account, a liability on the Fed’s balance sheet that must be matched with assets, is used by the government to meet payments. If emptied, it can act as a form of stimulus, potentially sending risk assets like Bitcoin higher.
“The Fed is irrelevant,” Hayes said, adding “you have the utmost respect” for Yellen.
“The big focus of the markets is shifting to the announcement regarding the level of the Treasury general account,” said Althea Spinozzi, head of bond strategy at Saxo Bank, in a quarterly refinancing announcement preview seen by Coin Office.
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The price of bitcoin has skyrocketed over the past year, surpassing its previous high of $69,000 on the dollar. … [+]
The rise in the price of bitcoin over the last year, from a low of $15,000 per bitcoin following the collapse of the FTX exchange, to a new all-time high of over $70,000, has been largely driven by expectations of a Fed interest rate cut and early trading. of a fleet of long-awaited bitcoin spot ETFs on Wall Street.
Recent economic data has all but erased the chances of an upcoming US interest rate cut, while inflows into new Bitcoin ETFs have all but dried up.
“This week’s crypto market continues to drift lower,” Rachel Lin, chief executive of Singapore-based decentralized derivatives exchange SynFutures, said in emailed comments.
“The bears sold during the strong rally we saw earlier in the week, and the long-awaited bitcoin halving occurred and took place without any significant impact on price action. If we Based on previous cycles, the weeks following the halving will be we will see a sideways or downtrend until Bitcoin surpasses the previous high, which currently stands at $73,600.
