TechFlow news: Arthur Hayes, former co-founder of BitMEX, said that as we enter the end of the third quarter, fiat liquidity conditions are extremely favorable for cryptocurrency holders. Central banks around the world, especially the Federal Reserve, are lowering funding costs, even as inflation remains above target and the U.S. economy continues to grow. Yellen has committed to issuing $271 billion in Treasury bonds and repurchasing $30 billion by year-end, which is expected to inject $301 billion in liquidity into the market.
Additionally, the U.S. Treasury still has approximately $740 billion in funds available to stimulate the market. After raising interest rates, the Bank of Japan stated it would consider market conditions when making future rate hikes. Hayes noted that while he does not focus on the stock market, if the Fed cuts rates amid a strong economy, it could lead to an increase in money supply, thereby driving up finite-supply assets like Bitcoin.
