In a post on X, Hayes encourages Bitcoin enthusiasts to pay attention to the significant increase in the liquidity of the US dollar. He believes that BTC may reflect the rising liquidity of the US dollar, leading to an increase in its price.
Accompanying charts illustrate variations in the RRP and TGA balances, showing a potential relationship between increased US dollar liquidity and BTC price.
Meanwhile, cryptocurrency analyst Dharmafi shared more specific data on X. The post emphasizes that RRP is $65 billion, and TGA balance is $35 billion, with a substantial net liquidity increase of $106 billion since November 21.
As Hayes emphasizes, the increase in liquidity indicates changing dynamics in the financial market. Investors and Bitcoin enthusiasts are observing the liquidity injection and its potential impacts on the cryptocurrency market.
While the BitMEX co-founder highlights the connection between US dollar liquidity and the price of Bitcoin, Dharmafi’s data further reinforces the impact of increased liquidity. The $106 billion net liquidity increase since November 21 raises questions about potential effects on various asset classes, including cryptocurrencies.
Meanwhile, Yellen, a Bitcoin skeptic, recently cautioned cryptocurrency exchanges to comply with regulations when speaking to Reuters at a G20 finance ministers and central bank governors meeting.
Yellen emphasized the importance of compliance in the digital currency industry, highlighting the necessity to adhere to regulations to operate within the US financial system.