PANews reported on August 28 that Arthur Hayes, co-founder of BitMEX, published his latest article "Sugar High", discussing issues such as why the yen's interest rate hike is not enough. Hayes said that entering the final stage of the third quarter, fiat liquidity conditions are very favorable for cryptocurrency holders. Central banks around the world, now led by the Federal Reserve, are reducing the cost of funds. The Federal Reserve cut interest rates when inflation is above target, while the US economy continues to grow. The Bank of England and the European Central Bank may continue to cut interest rates at their upcoming meetings. Treasury Secretary Yellen promised to issue $271 billion in Treasury bills and conduct $30 billion in repurchases by the end of the year. This will add $301 billion in US dollar liquidity to the financial market. The U.S. Treasury has about $740 billion left in the Treasury Account (TGA), which can and will be used to stimulate the market and help Harris win.
The article also wrote: "Some people point out that historically, when the Fed cuts interest rates, the stock market will fall. Some people also worry that the Fed's interest rate cuts are a leading indicator of a recession in the United States and even developed markets. This may be correct, but if the Fed cuts interest rates when inflation is above the target and economic growth is strong, imagine what they will do if a US recession does occur. They will increase their printing of money and significantly increase the money supply. This will lead to inflation and may be bad for certain types of businesses. But for assets with limited supply like Bitcoin, this will be a rapid journey to the moon."
