BitMEX founder Arthur Hayes predicted that with the US government reopening, liquidity in the market will recover, which will have an upward impact on Bitcoin (BTC) and Zcash (ZEC) prices.
Arthur Hayes: BTC and ZEC Prices Expected to Rise as US Government Reopens
In his post dated November 5, Hayes stated that despite the US debt ceiling being raised since July, the Bitcoin price has fallen by 5 percent, while market liquidity has decreased by 8 percent in the same period.
The primary reason for this decline was the US Treasury Department’s increase in general account (NPL) holdings and the withdrawal of liquidity from the market.
According to the renowned analyst, the decline in NPL balances following the end of the US government shutdown will allow a re-influx of funds into the market. This is expected to both stimulate a general revival in the cryptocurrency market and drive upward momentum, particularly in the price of BTC.
Hayes also stated that privacy-focused cryptocurrency ZEC (Zcash) could benefit more from this process than Bitcoin. He believes increased liquidity and investor interest could support ZEC’s entry into a stronger uptrend.
These statements by Arthur Hayes are considered by market participants as an important warning about the impact of US financial policies on crypto assets.
*This is not investment advice.
Continue Reading: BitMEX Founder Arthur Hayes Expects a Rise in Bitcoin and This Altcoin! Here’s Why
