Why Bitcoin Isn’t Taking Off Despite Fed Rate Cuts, According to Arthur Hayes
Despite the Fed’s announcement to cut interest rates in September, Bitcoin hasn’t responded as expected. Arthur Hayes, co-founder of BitMEX, offers an explanation: Reverse Repurchase Agreements (RRPs), which currently offer a yield of 5.3%, are diverting funds away from US Treasuries, preventing capital from flowing into risky assets like Bitcoin. According to Hayes, as long as Treasury yields remain lower than RRPs, liquidity won’t support the Bitcoin market.
