Arthur Hayes, co-founder and former CEO of the BitMEX exchange, presented his theory on the small impact of the Federal Reserve’s interest rate cut on the price of Bitcoin (BTC). Hayes pointed to repos, which have an interest rate of 5.3 percent, higher than Treasuries, which yield 4.38 percent. This has led money market funds to shift capital from government bonds to repo agreements, reducing the liquidity of risky assets such as digital currencies. Since the announcement of a possible rate cut in September, an additional $120 billion has been invested in the repo market. This trend contradicts the common belief that lower interest rates are good for risky assets like Bitcoin . According to the CME Fed Watch tool, there is a 69% probability of a 25-point rate cut and a 31% probability of a 50-point cut.
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