BitMEX co-founder Arthur Hayes has shared his belief that the cryptocurrency market could experience a surge in bullish momentum thanks to a potential increase in liquidity. Hayes took to the social media platform X to inform his 502,700 followers about the upcoming quarterly refinancing announcement (QRA) from U.S. Treasury Secretary Janet Yellen on May 1st. According to Hayes, Yellen’s fiscal decisions could have a positive impact on the crypto market.

Hayes outlined three possible options that Yellen could consider. Firstly, he suggested that Yellen could stop issuing treasuries and deplete the Treasury General Account (TGA) to zero, resulting in a $1 trillion injection of liquidity. Secondly, he proposed that Yellen could shift more borrowing to T-bills, which would remove money from the reverse repurchase agreement (RRP) and inject $400 billion of liquidity. Lastly, Hayes mentioned a combination of both options, where no long-term bonds are issued, only bills, and both the TGA and RRP are depleted simultaneously, resulting in a $1.4 trillion injection of liquidity.

Hayes dismissed the relevance of The Fed and stated that if any of the three scenarios were to occur, investors could anticipate a rally in both stocks and crypto.