Arthur Hayes, the co-founder of the popular derivatives exchange BitMEX, a 2014 founded company gave his explanation for the current upward movement in the crypto industry and presented his thoughts on why Bitcoin and Ethereum are surging.
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Guess who is pumping $BTC and $ETH pic.twitter.com/MIXh60PiIh— Arthur Hayes (@CryptoHayes) October 25, 2022
In the past few days, the cryptocurrency market has soared, aiming for the desired $1 trillion total capitalization milestone. Numerous cryptocurrencies have shown rises in the single- and double-digits.
Leading the way is Ethereum, which has increased by over 11% and is now trading above $1,500. Bitcoin also experienced a significant 5% increase, and is presently trading at about $20,600 at the time of writing. Other cryptocurrencies also joined the bullish price action, ending the recent turmoil and achieving the benchmark of $1 trillion in capitalization.
As a result of the most recent pump, investments worth more than $800 million that were primarily short were liquidated, shocking the derivatives market.
The veteran commented “the US Treasury is thinking about supplying the market with more short-term Treasury bills (T-bills) to alleviate a shortage.”
Hayes warns of a reversal in crypto prices
Trading and crypto enthusiasts said that short-term T-bills and money market funds are held in the Fed’s reverse repo facility, which offers a similar interest. He said that the crypto market should prepare for a pump because of the $2.2 trillion that is currently held in RRP.
Hayes emphasized that the T-bill buybacks and reissues have not yet taken place and added that if this is just a trial, it might blow up and strike down.
“These buybacks and re-issues of new on-the-run T-bills have not actually happened yet. If this is just a trial balloon and it pops, make sure to put on your adult diaper for the reversal,” the crypto advocate stated.
In September this year, the fintech pioneer explained why he thinks that Ethereum is not money while Bitcoin is during an interview with Unchained podcast.
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