Arthur Hayes: U.S. Treasury Secretary Yellen may launch a massive liquidity injection plan to accelerate the return of the crypto bull market

According to BlockBeats, on April 26, BitMEX co-founder Arthur Hayes posted on social media that as the U.S. Treasury Department expects tax revenue to increase the general fiscal account (TGA) by about $200 billion, U.S. Treasury Secretary Janet Yellen is expected to inject a lot of liquidity into the market when she announces the Treasury bond issuance plan for the second quarter of 2024 next week. Hayes proposed three possible options: first, stop issuing Treasury bonds and reduce TGA to zero, which will inject $1 trillion of liquidity into the market; second, transfer more borrowing to short-term Treasury bills, thereby withdrawing $400 billion from the overnight reverse repurchase facility (RRP) to inject liquidity into the market; third, combine the first two practices, do not issue long-term bonds, only issue short-term Treasury bills, and consume TGA and RRP at the same time, which will inject $1.4 trillion of liquidity into the market. Hayes emphasized that the Federal Reserve has become irrelevant, and Yellen's role will become crucial. If any of the above three options occur, it will drive the stock market up, and more importantly, it will accelerate the return of the cryptocurrency bull market. Hayes called on the market to respect the influence of "bad girl" Yellen.