Arthur Hayes: The new U.S. monetary policy will help boost the rebound of the cryptocurrency market

On May 2nd, BitMEX co-founder Arthur Hayes expressed optimism about Bitcoin's trend in his latest blog post titled "May Risks". Hayes provided a detailed analysis of the potential impact of recent changes in U.S. monetary policy on the crypto market. He pointed out that the Federal Reserve's decision to reduce its balance sheet from $95 billion per month to $60 billion is essentially equivalent to adding $35 billion in liquidity each month. Meanwhile, the U.S. Treasury Department revealed in its latest quarterly report that it will issue short-term government bonds with terms of 4 weeks, 6 weeks and 8 weeks to meet funding needs before the end of May. This move is expected to bring additional dollar liquidity into the market.

Hayes also mentioned that after Republic First Bank went bankrupt, FDIC used insurance funds to protect all depositors' interests and avoid bank runs. This means that US authorities have effectively added a contingent liability of $6.7 trillion for banks nationwide.

Hayes believes these factors will continue injecting dollars into markets, easing downward pressure on cryptocurrencies and promoting Bitcoin’s stability and rebound over coming months. He predicts Bitcoin may have bottomed near $58,600 and will return above $60,000 soon while consolidating between $60-70k until summer ends in Northern Hemisphere.

He also disclosed he has been buying low SOL tokens among others with high Beta values as he expects a bounce back.