Arthur Hayes, co-founder and former CEO of BitMEX, published a revealing essay this Friday about current finance trends. The analyst argues that the new reserve management purchases program is effectively disguised money printing. In his view, this mechanism aims to inject capital without creating the political stigma of traditional programs. In this way, Federal Reserve liquidity will increase systematically over the coming months for investors.
The RMP program consists of the purchase of short-term Treasury bills by the central bank organization. The Fed announced initial purchases of forty billion dollars to maintain sufficient bank reserve levels. Arthur Hayes argues that recycling this capital through money markets directly funds government spending today. Therefore, this technical operation hides a monetary expansion that primarily benefits those holding scarce financial assets globally.
This fund injection process has a direct impact on the valuation of currencies such as the dollar. Hayes warns that the devaluation of fiat money destroys the dignity of people without assets. The essay published on his Substack points out that the increase in money supply weakens wages. Likewise, Federal Reserve liquidity generates a wider gap between institutional investors and regular everyday workers.
The technical mechanism of the RMP program that facilitates the financing of government spending
The Fed’s decision follows a cut in interest rates by twenty-five basis points during December. Jerome Powell defended the measure as a technical adjustment to maintain an ample reserve supply. However, Hayes considers this policy a disguised form of very aggressive and stealthy quantitative easing. As a result, investors must prepare for an inflationary environment that will affect the entire global economÃa soon.
Arthur Hayes actively recommends owning assets such as gold, silver, and Bitcoin to protect personal wealth. The entrepreneur prefers financial assets that grow faster than the creation of new fiat money. On the other hand, Polymarket data suggests there will be a pause in cuts during January. However, the expansion cycle of Federal Reserve liquidity could reactivate strongly toward the year 2026.
Will the new capital injection lead Bitcoin toward new all-time highs in the near future?
The evolution of Bitcoin’s price is closely linked to these movements in United States monetary policy. The leading cryptocurrency has firmly established itself as a critical component of the global financial conversation. Despite recent volatility, the asset maintains its appeal as a hedge against the weakness of the dollar. Therefore, many analysts expect the bullish trend to resume once macroeconomic conditions eventually improve.
Finally, the future of the Fed will depend on who succeeds Jerome Powell in the year 2026. Donald Trump seeks a successor who will apply interest rate cuts in a constant manner. Kevin Hassett appears as the frontrunner candidate to lead the agency and change the monetary course. In this way, Federal Reserve liquidity will remain the determining factor for the success of all investors. Only those holding scarce assets will manage to preserve their wealth in this new economic scenario.
