TechFlow news — On September 2, Arthur Hayes, co-founder of BitMEX, analyzed on social media the reasons behind the Federal Reserve's rate cut plan falling short of expectations. He noted that since Powell announced a rate cut in September, Bitcoin has dropped 10%, possibly because the overnight reverse repurchase (RRP) rate at 5.3% is higher than that of short-term Treasury bonds. This has caused funds to shift from Treasuries to RRP, negatively impacting liquidity. Hayes expects this trend to persist as long as Treasury yields remain below RRP rates. He will discuss this topic further in tomorrow's keynote speech at KBW.
Add to Favorites
Share to Social Media
