- Arthur Hayes has created a custom index on the Bloomberg Terminal to time his crypto purchases.
- The BitMEX founder plans to use the index to monitor the impact of TGA refills on the US dollar’s liquidity.
- Hayes stated that he would purchase cryptocurrencies as long as the net liquidity index remains positive.
Popular crypto entrepreneur Arthur Hayes has built a custom index on the Bloomberg terminal. The BitMEX founder plans to use the Bloomberg index to time gauge the impact of the government filling up the Treasury General Account (TGA) on the United States stock market as well as the crypto market.
Hayes took to Twitter earlier today to tell his followers about his latest creation on the Bloomberg terminal. The index, <.USTLIQ U Index>, was created using the terminal’s CIX function, which helps users create their custom index and monitor multiple securities. The index’s output depends on the Treasury General Account (TGA) and the Reverse Repurchase Agreement (RRP).
Arthur Hayes’ index is tuned to return a positive US dollar liquidity if the value of RRP is lower than it was before the debt ceiling bill was signed on June 3, 2023. If the TGA’s reading rises above its value as of June 3, it would return a negative US dollar liquidity. The metric that Hayes would look for is the net of the two values.
The BitMEX founder concluded that once the TGA balance exceeds $450 billion, the United States Treasury would likely slow down the issuance of debt. This would also lead to a decrease in the draining of US dollar liquidity from the stock markets.
Arthur Hayes told his Twitter followers that the current US dollar net liquidity of $77 billion had little impact on the risk markets and that the TGA refill was not a matter of concern for investors. As for his crypto purchases, Hayes revealed that he would increase the pace as long as the index remains positive. Should the net liquidity index turn negative, he would stop purchasing cryptocurrencies.
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