BitMEX founder and cryptocurrency analyst Arthur Hayes claimed in his latest article that the US government and the Federal Reserve have initiated a “stealth QE” process. According to Hayes, this could spark a new bullish wave in Bitcoin and the cryptocurrency market. Hayes stated that the US government has chosen to borrow rather than raise taxes to cover its rising spending. However, he argued that this situation is unsustainable because foreign central banks are now turning to gold rather than dollar-denominated assets, and the US savings rate is not sufficient to support new bond issuance. Hayes noted that the four major U.S. commercial banks are only buying a small portion of the new bonds, adding that the gap is being filled by relative value hedge funds, which use leverage through repurchase agreements to finance U.S. bonds. The US Treasury Department is expected to issue approximately $2 trillion in new debt annually in the coming years. Hayes explained that when liquidity is tight, the Fed injects funds into the market through its fixed repo mechanism, which he described as “indirect monetary expansion.” The increased use of repos expands global dollar liquidity, ultimately creating an effect similar to quantitative easing. According to Hayes, when this process accelerates, it could trigger a strong recovery wave for Bitcoin and the broader crypto market. Hayes stated that market liquidity has been temporarily squeezed during the current period due to the US government shutdown and bond auctions. At the end of his article, Hayes stated, “The market will rebound sharply once 'stealth QE' kicks in,” arguing that the upcoming quantitative easing could usher in a new bull season in the crypto market. *This is not investment advice.