BTC to Rally as TGA Decline Boosts USD Liquidity After July Debt Ceiling Rise, Arthur Hayes Says

COINOTAG News notes that BitMEX co-founder Arthur Hayes points to a liquidity-driven backdrop for crypto assets since July’s debt-ceiling increase. He observes that Bitcoin has slipped about 5%, while onshore USD liquidity has contracted roughly 8%, amplifying near-term risk and volatility. The move reflects tighter liquidity as the Treasury General Account (TGA) absorbs domestic cash, weighing on price pressure across the market.

Looking ahead, Hayes argues that a resolution to the US government shutdown could reset liquidity dynamics. If the TGA contracts further and dollar liquidity improves, the upside bias for BTC could re-emerge, with observers noting a more pronounced rally in ZEC in risk-on scenarios. Investors should monitor official liquidity data and macro signals to gauge the credibility of this flow-driven narrative.