Another essay by Arthur Hayes, “Water, Water Everywhere,” was recently published. It references financial markets, the Fed, and Bitcoin a lot.
Arthur pointed out that the key driver of crypto market growth is dollar liquidity, which is currently low but could soon increase significantly.
Key points:
⚫When money leaves the Fed’s balance sheet, it adds liquidity, which causes finite financial assets like Bitcoin to skyrocket.
⚫During this cycle, BTC and now ETH have received structured bids in the form of net inflows into US-listed exchange-traded funds (ETFs). While Bitcoin and Ethereum have corrected since April, they have avoided the carnage that has occurred in the altcoin market.
⚫The alt season will return only after BTC and ETH decisively break through $70,000 and $4,000, respectively.
⚫Solana will also rise above $250, but the crypto market wealth effect from Solana pumping will not be as strong as Bitcoin and Ethereum, given their relative market size
➗Hayes always has quite interesting thoughts and they can be considered as an interesting opinion. But you should not blindly believe in only one opinion.
