BitMEX co-founder Arthur Hayes dropped a big scoop, stating that the key institution influencing the future of Bitcoin is not the Federal Reserve, but the US Treasury! This is quite interesting, let's talk about it.
First, let's talk about the Federal Reserve. Everyone knows that the Federal Reserve is the big boss in the US financial circle; interest rates and monetary policy are determined by it. In theory, the price trend of a digital currency like Bitcoin should be significantly influenced by the Federal Reserve. But Arthur Hayes says that the true influence on the future of Bitcoin comes from the US Treasury. What's going on here?
Hayes said that the US Treasury Secretary is now managing the ever-expanding debt burden through repurchase and auction strategies. This sounds quite complicated; simply put, the Treasury is engaging in some financial operations that are reshaping global liquidity. What is liquidity? It's the flow of money in the market. Now everyone is concerned about one issue: whether the liquidity of the dollar in the system is continuously increasing. In other words, is the flow of dollars in the market becoming smoother and more abundant?
Why is this important? Because the US dollar is the world's major reserve currency, and the liquidity of the dollar directly affects the stability of the global financial market. Bitcoin, as a digital currency, has its price closely related to the liquidity of the dollar. If dollar liquidity increases, the price of Bitcoin may rise. Therefore, the actions of the US Treasury are indirectly influencing the price of Bitcoin.
Moreover, Hayes mentioned a key factor, which is geopolitical issues. The current international situation is quite complex, and geopolitical factors can also affect the price of Bitcoin. He predicts that the upcoming trade agreement between the US and China may be more symbolic than it is a substantive change. This means that the actual impact of the trade agreement on the market may not be significant, but market sentiment and expectations may be affected, thereby influencing the price of Bitcoin.
The most exciting part is that Hayes also disclosed his investment portfolio. He said that about 60%-65% of his portfolio is in Bitcoin, 20% is in Ethereum (ETH), and the rest consists of some 'practical functional tokens'. This is quite a bold move! His optimism about Bitcoin also suggests that he believes in a bright future for Bitcoin, doesn't it?
Therefore, this gives us a revelation: although the Federal Reserve is powerful, the price trend of Bitcoin may still depend on the US Treasury. Regardless of whether the Federal Reserve cuts interest rates, what needs to rise may still rise!
Arthur Hayes' remarks have truly opened our eyes! Everyone should pay attention to the subsequent developments to see how the US Treasury will operate and how Bitcoin will rise!