Arthur Hayes: U.S. Treasury Secretary Yellen may launch a massive liquidity injection plan to accelerate the return of the crypto bull market

ChainCatcher news, BitMEX co-founder Arthur Hayes stated on social media that as the U.S. Treasury expects tax revenue to increase the Treasury General Account (TGA) by about $200 billion, U.S. Treasury Secretary Janet Yellen is expected to inject significant liquidity into the market when announcing the debt issuance plan for the second quarter of 2024 next week.

Hayes proposed three possible options: first, to stop issuing government bonds, reducing the TGA to zero, which would inject $1 trillion of liquidity into the market; second, to shift more borrowing to short-term Treasury bills, thereby withdrawing $400 billion from the overnight reverse repurchase agreement (RRP) tool to inject liquidity into the market; third, to combine the first two approaches, not issuing long-term bonds, only issuing short-term Treasury bills, while consuming TGA and RRP, which would inject $1.4 trillion of liquidity into the market.