The crypto market has shown a downward trend over the past two weeks. But according to Arthur Hayes, co-founder of the crypto exchange BitMEX, this could soon change.

He recently shared his analysis on the US economy and the possible impact on the crypto market on X (formerly Twitter).

New Bull Run for Crypto Market Possible Due to Fiscal Policy Decisions

Hayes predicts the market could see a rebound as early as next Monday, driven by fiscal policy decisions from US Treasury Secretary Janet Yellen. This is partly due to the Biden administration’s plans to increase taxes. It includes an increase in corporate taxes from 21% to 28% and a minimum income tax of 25% for taxpayers with assets of more than $100 million.

Hayes points out that these plans will lead to a significant increase in the Treasury General Account (TGA) balance. A higher TGA balance means that the Federal Reserve (Fed) has more money to cover the federal government’s daily expenses. This gives the government more financial flexibility without issuing additional debt.

According to Hayes, this increase in TGA balance could provide a liquidity injection of up to $1,400 billion. This would significantly increase market liquidity, which is especially attractive for investors in risky assets, such as cryptocurrencies. The end result according to Hayes? A new bull run in the crypto market.

BTC price of $1 million

Jack Mallers, the CEO of Bitcoin Lightning Network company Strike, expects that Bitcoin’s price could potentially reach $1 million if a new bull run begins. He points to the current problems within the bond market, which are historically significant. Banks with large positions in bonds are particularly at risk.

Mallers argues that the necessary liquidity injections to stabilize these markets could increase the prices of financial assets, including Bitcoin. The scarcity of the digital currency in such a scenario could push the price further, with predictions ranging from $250,000 to $1,000,000.

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