Arthur Hayes: US Money Is About to Spark a Crypto Super Bull Cycle

TGA and Arthur Hayes' “only up” forecast
BitMEX co-founder Arthur Hayes believes the cryptocurrency market is about to enter a period of strong growth after the US Treasury Department increased the TGA account balance to $850 billion .

He commented that when this liquidity suction process ends, the market will only go up.

The TGA is almost complete, the target is $850 billion. When the liquidity withdrawal ends, 'there will only be continued growth,'" Hayes emphasized.

Controversy over TGA's role in the market
The TGA is considered the US Treasury's "private bank," and money transferred to this account does not flow into the private market , thereby reducing liquidity.

According to Hayes, the completion of the withdrawal process will open up opportunities for Bitcoin and other cryptocurrencies to increase in price. However, some experts say this argument is too simple and lacking in basis.

Analysts' counter-arguments
André Dragosch, Head of European Research at Bitwise, countered:

“Net liquidity is only loosely, if not very slightly, correlated with Bitcoin and other cryptocurrencies. I think this is a useless analysis.”

Meanwhile, analyst Noodles was even more critical:

“Hayes, you are lying. The end of the TGA does not mean that prices ‘will rise’… It only means that the capital withdrawal has stopped, not that new money has been injected.”

So, while Hayes' view is optimistic, the market is still divided on whether the move from the US Treasury will actually be a boost for cryptocurrencies.