BitMEX co-founder Arthur Hayes predicted that the US Federal Reserve's (Fed) expansion of liquidity supply could act as a driving force for the cryptocurrency market's rise, projecting that the price of Ethereum (ETH) will reach $10,000 by the end of this year. In a recent op-ed, Hayes analyzed, “If selling pressure on French government bonds and bank bonds increases, French banks may reduce their funding in the repo (repurchase agreement) market. Consequently, if US Treasury funding costs rise and hedge funds deleverage, the New York Federal Reserve may expand its repo market operations, potentially increasing the Fed's balance sheet by approximately $10 billion per month. In this process, providing dollar liquidity would expand global fiat liquidity, and the cryptocurrency market could benefit relatively quickly.”
