Can the Fed make cryptocurrencies soar? Arthur Hayes gives the answer and reveals the new goals of E

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Arthur Hayes predicts a new bull market: Federal Reserve liquidity expansion may become a catalyst for the crypto market

Arthur Hayes, as one of the most influential figures in the cryptocurrency market, predicted the arrival of a new bull market. He suggested that the Federal Reserve's expansion of liquidity conditions could trigger a new round of gains in the cryptocurrency market.

In his latest article, Hayes pointed out that if this scenario comes true, Ethereum (ETH) is expected to reach US$10,000 by the end of 2026.

The French bond market could become a key variable in global liquidity

Hayes said that potential selling pressure on French government bonds and bank bonds could cause French banks to reduce financing activities in the U.S. repo market. He further speculated that if this pushed up the cost of financing U.S. Treasuries and prompted hedge funds to reduce leverage, the Federal Reserve Bank of New York could expand the size of its repo operations and increase the Fed's balance sheet by about $10 billion a month.

According to Hayes's analysis, such intervention measures may trigger a new round of expansion of the Federal Reserve's balance sheet, thereby increasing dollar liquidity and promoting easing global financial conditions. Therefore, he believes that the potential expansion of the Federal Reserve's balance sheet will become an important bullish catalyst for crypto assets, which in turn will exert upward pressure on risky assets such as Bitcoin and Ethereum.

Ethereum target price: US$10,000!

Hayes 'most eye-catching predictions focus on Ethereum. He pointed out that if liquidity development meets its expectations, Ethereum (ETH) may hit its target price of US$10,000 before the end of 2026.

In addition, Hayes also set target prices for other tokens: ENA is US$0.50 and ETHFI is US$2.

The above content does not constitute investment advice.