Arthur Hayes: Liquidity withdrawal caused by the US government shutdown is one of the reasons for the current weakness in the crypto market

Jinse Finance reported that on November 4, BitMEX founder Arthur Hayes stated in an article that the U.S. Treasury is borrowing money but not spending it. The Treasury General Account is about $150 billion higher than its $850 billion target, and this extra liquidity will not be released into the market until the government reopens. This withdrawal of liquidity is one of the reasons for the current weakness in the crypto market. He expects the market to experience volatility, especially before the U.S. government shutdown ends. Many people will mistakenly interpret this period of market weakness and stagnation as the top and sell their holdings, which is a mistake, because the operating mechanism of the U.S. dollar money market does not lie. The Treasury not only needs to issue $2 trillion every year to fund the government, but also has to issue several trillions more to roll over maturing debt, and the invisible quantitative easing through the SRF will begin soon.