According to Arthur Hayes, former BitMEX CEO and prominent crypto analyst, digital assets are poised to enter a significant upward trajectory once the United States Treasury General Account (TGA) reaches its $850 billion target. Hayes emphasizes that this liquidity milestone will catalyze substantial capital inflows into private financial markets, creating favorable conditions for risk-on assets like cryptocurrencies.
The TGA, essentially the federal government’s operational account held at the Federal Reserve, plays a crucial role in monetary dynamics. As it approaches this key threshold, excess liquidity is expected to circulate through the financial system. Hayes argues that this environment historically benefits speculative assets, reducing selling pressure and fostering bullish momentum across crypto markets.
Market observers are closely monitoring Treasury announcements and balance sheet movements for signals of this liquidity shift. Hayes’ analysis suggests that once the TGA is sufficiently replenished, the diverted capital could drive the next major crypto market cycle. This perspective aligns with broader macroeconomic theories linking government treasury operations to asset performance, particularly in alternative investment classes.
