Arthur Hayes: New US Monetary Deal Will Boost Crypto Market Rally

On May 2nd, Arthur Hayes, co-founder of BitMEX, expressed his optimism about the trend of Bitcoin in his latest blog post entitled "May Peril". Hayes detailed the potential impact of recent changes in US monetary policy on the crypto market.
Hayes pointed out that the Federal Reserve decided to reduce the rate of balance sheet shrinkage from $95 billion per month to $60 billion, which is essentially equivalent to an additional $35 billion of liquidity per month. At the same time, the US Treasury revealed in its latest quarterly loan and repayment report that in order to meet the funding needs until the end of May, it will increase the issuance of short-term Treasury bonds with maturities of 4, 6 and 8 weeks in the near future. This move is expected to bring additional dollar liquidity to the market. Hayes also mentioned that after the failure of the small US bank Republic First Bank, the FDIC used insurance funds to ensure the interests of all depositors in order to avoid deposit runs. This means that the US authorities have essentially added a $6.70 trillion contingent liability to the national banking system.
Hayes believes that the above factors will continue to inject dollars into the market, reduce the downward pressure on cryptocurrencies, and promote Bitcoin to stabilize and rebound in the coming months. He predicts that Bitcoin may have bottomed near the 58,600 dollar, and will then return to above the 60,000 dollar and consolidate in the 6-70,000 dollar range until the end of the northern hemisphere summer. He also revealed that he is optimistic about the rebound and is currently absorbing high beta tokens such as SOL.