Cryptographic markets will enter into “UP only” mode once the US Treasury has reached its target objective of fulfilling the general account (TGA), the bank account of the Treasury Department, with $ 850 billion, according to Arthur Hayes, co-founder of Bitmex Crypto Exchange.
“With this full liquidity drain, the recovery can resume,” Hayes wrote on Friday while the opening balance of the United States TGA has crossed $ 807 billion. When the Treasury fills its general account, funds are generally sequestrated and do not circulate on the private markets.
However, not all analysts were convinced by the prediction of Hayes that liquidity will flow into the financial markets once the US Treasury has achieved its objective.
“Clear liquidity has a loose correlation with bitcoin and crypto at best, however. Think that it is a unnecessary banana in my opinion, ”replied André Dragosch, the European research manager in the investment company, replied.
Many cryptographic investors and merchants anticipate the increase in liquidity levels in the coming months, while the American federal reserve is based on the interest rate cutting cycle, which should increase the prices of assets until liquidity is revealed and that the cease -constant rate is starting.
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The American federal reserve reduces rates for the first time in 2025, while investors anticipate more reductions
On Wednesday, the United States Federal Reserve reduced interest rates by 25 basic points (BPS), or a quarter of percent – the first drop in the interest rate since 2024.
Bitcoin (BTC) fell below $ 115,000 immediately after the decrease in prices, in a classic Sell the-News event.
Nic Puckrin, founder of the Education and Media Company Coin Bureau, warned of a short -term decline and said the markets were probably at the cost of reducing the decision of the American Central Bank to reduce prices.
The president of the federal reserve, Jerome Powell, said that the Federal Open Market Committee (FOMC), the group of 19 civil servants who weighs interest rate decisions, remains divided on additional rate reductions in 2025.
However, 91.9% of merchants provide that the FOMC will reduce interest rates up to 50 BPS at the next meeting in October, according to data recovered at the time of writing the Chicago Mercantile Exchange (CME).
The CME group is a company that manages the main financial derivative scholarships, including the term markets.
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