U.S. Treasury Plays a Crucial Role in Crypto Market Dynamics

By: cointurk|2025/05/08 18:15:02
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Arthur Hayes, the co-founder and former CEO of BitMEX, addressed cryptocurrency investors, emphasizing the rising influence of the U.S. Treasury Department over the Federal Reserve in American monetary policy. He pointed out that the true authority in global liquidity management lies not with the Fed, but with the Treasury. According to Hayes, the inevitably growing money supply would impact the cryptocurrency market . Treasury Secretary Scott Bessent’s strategies play a critical role in balancing the debt burden. The Treasury’s Prominent Strategies Hayes stated, “The real show is in the Treasury Department, ignore the Fed, it doesn’t matter.” In his view, the current monetary policy has created waves of liquidity explosions. Under Bessent’s leadership, maneuvers are focused on balancing American debt. Consequently, market participants monitor liquidity fluctuations according to indicators set by the Treasury. Hayes argued that capital controls are effective rather than strict regulations. He remarked, “The true policy is capital controls.” He stressed that the lack of control over American expenditures would accelerate the flow of increasing liquidity into the cryptocurrency market. Hayes also mentioned that steps like tax measures and capital restrictions need consideration. According to him, political actors do not prefer austerity measures. U.S.-China Trade War: Symbolism, True Balance, and Risks Hayes noted that despite the official signing, the agreement does not present a fundamental change. In his opinion, President Trump’s effort to prove toughness towards China aligns with Xi Jinping’s gesture to show resistance to the West. Consequently, no fundamental difference in the flow of goods and services will occur soon. China’s strategy of purchasing American assets will continue. Hayes mentioned, “Even if they have to conceal how much they buy, it’s mathematically impossible for them to stop.” In conditions of excessive liquidity, foreign investment restrictions might emerge, creating new trends in the crypto market .

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