French Bond Market Could Be Critical for Global Liquidity!
Arthur Hayes said that potential selling pressure on French government and bank bonds could lead French banks to reduce their funding activities in the US repo market.
Hayes suggested that if this situation increases U.S. Treasury financing costs and triggers hedge funds to reduce leverage, the New York Federal Reserve could expand its repo operations and increase the Fed’s balance sheet by approximately $10 billion per month.
According to Hayes, such an intervention could create renewed expansion in the Fed’s balance sheet. This could lead to increased dollar liquidity and a loosening of global financial conditions.
Therefore, Hayes believes that a potential FED balance sheet expansion could be a significant bullish catalyst for crypto assets, putting upward pressure on risky assets like Bitcoin and Ethereum.
Ethereum Target: $10,000!
Hayes’ most notable prediction concerned Ethereum. He predicted that if liquidity conditions develop as he expects, $ETH could reach $10,000 by the end of 2026.
Hayes also indicated target levels of $0.50 for ENA and $2 for ETHFI.
*This is not investment advice.