Arthur Hayes: The US government is brewing a "hidden QE," which may drive a new round of growth in the crypto market.

In a recent lengthy article, BitMEX founder Arthur Hayes points out that the US Treasury and the Federal Reserve are brewing a "stealth QE," which could be a key catalyst for a new round of price increases in Bitcoin and the crypto market. Currently, the US government is expanding its spending, favoring debt issuance over tax increases. Foreign central banks are more inclined to buy gold due to the risks associated with dollar assets, the US private savings rate is insufficient to support Treasury bond issuance, and the four major commercial banks have only absorbed a small portion of new debt. "Relative value hedge funds" have become marginal buyers of US Treasuries, leveraging repurchase agreements to finance their bond purchases.