XBIT Wallet reported on September 21st that the crypto market has once again been stoked by a prediction from BitMEX co-founder Arthur Hayes. With the opening balance of the U.S. Treasury General Account (TGA) exceeding $807 billion, just shy of its $850 billion target, Hayes bluntly predicted that once the target is reached, the crypto market will enter a “only up, no down” phase, suggesting an end to the liquidity crunch. For investors holding multiple altcoins, choosing an adaptable and secure altcoin wallet is essential for managing market volatility. XBIT Wallet, a decentralized web3 wallet, has become a popular choice for many users due to its support for storing over 200 altcoins and real-time synchronization of liquidity data. Its seamless integration with the XBIT decentralized exchange also allows users to quickly transfer and trade assets when capturing liquidity dividends, eliminating the need to switch between platforms.
From Hayes’ perspective, fluctuations in TGA account funds are directly linked to crypto market liquidity: When funds are withdrawn, market liquidity tightens. Due to their small market capitalization and high volatility, altcoins place higher demands on the security and stability of their wallets. Once the balance reaches the required level, liquidity returns, potentially leading to price spikes for altcoins. XBIT Wallet’s real-time price alerts and multi-chain trading module allow users to flexibly adjust their holdings, perfectly meeting the needs of altcoin investors at different market stages. Mnemonics, a key concept in the Web3 world, are a core design element that safeguards user control over their assets. Compared to complex and difficult-to-remember private keys, mnemonics are easier to preserve. If a user experiences device problems, a properly backed-up mnemonic can restore their assets through the wallet, which is particularly crucial during periods of market volatility.
Cre: Twitter: XBITDEX
XBIT Wallet reports that André Dragosch, Bitwise’s Head of European Research, disagrees with Arthur Hayes’ predictions. His latest report argues that the correlation between net liquidity and cryptocurrency is “loose,” and that relying solely on TGA account balances to predict market trends ignores industry ecosystem variables. For example, when TGA funds were released in 2024, the crypto market declined due to exchange compliance issues and chaotic token issuance, demonstrating that regulatory and technical vulnerabilities far outweigh the impact of liquidity. Recent developments from the Federal Reserve reinforce this view. The minutes of the September 17th FOMC meeting showed that the Fed lowered the federal funds rate by 25 basis points to a range of 4.00%-4.25%, the first rate cut since December 2024. This adjustment triggered financial market volatility, indirectly affecting the supply and demand of funds in the crypto market, further demonstrating that the crypto market is influenced by a complex interplay of factors.
Past experience shows that interest rate cuts tend to increase market liquidity, potentially allowing some funds to flow into the cryptocurrency market, driving up the prices of major cryptocurrencies like Bitcoin while also creating more hype for altcoins. However, market analysts also warn that while Bitcoin saw a brief surge following the rate cut, disagreements within the Federal Reserve regarding the future path of interest rates could exacerbate short-term volatility in the crypto market. Dragosch’s comments urge altcoin investors to avoid relying on a single indicator. The XBIT Wallet decentralized wallet, a web3 economic token, is suitable for long-term asset management needs. Its decentralized asset management, cold wallet encryption, and on-chain traceability address the pain points of traditional wallets. The crypto market is influenced by a variety of complex factors, and investors cannot rely solely on a single indicator to make decisions. They must comprehensively consider various factors and respond cautiously to market fluctuations.
Cre: Twitter: XBITDEX
According to data from the XBIT Wallet app, as of September 21st, the real-time balance of the U.S. Treasury’s TGA account has been updated to $809.2 billion, just $40.8 billion away from the $850 billion target. The 24-hour trading volume of major altcoins monitored within the app (such as SOL, ADA, and DOT) increased by 12% compared to the previous day, and market depth increased by 8%, indicating that market expectations for liquidity release are beginning to influence trading behavior. XBIT Wallet’s real-time data provides users with accurate market information: when the TGA account balance approaches the threshold, the system automatically sends notifications about the impact of liquidity changes on holdings, and AI-powered analysis reports help investors formulate strategies in advance.
Cre: Twitter: XBITDEX
For ordinary investors, rational judgment requires reliable tools and a strong sense of security. At a time when the crypto market is divided over the changes in TGA accounts, XBIT Wallet not only addresses storage security and convenience issues with its professional altcoin wallet positioning, but also, through its “wallet + exchange” collaborative model, provides a comprehensive service chain from data monitoring to market alerts to asset trading. Whether short-term traders seeking to capitalize on liquidity gains or long-term altcoin investors, XBIT Wallet’s features allow them to quickly respond to market changes, seize market opportunities while maintaining asset security. This provides tailored asset management solutions for users with diverse needs.
It’s important to note that before using a wallet to manage assets, users must pay close attention to the security of their mnemonics. A mnemonic, also known as a seed or recovery phrase, is a random sequence of 12 to 24 words used to manage and restore a crypto wallet. It represents the wallet’s private key, and mastering it is equivalent to mastering the wallet and all its assets. This is also the key reason why XBIT Wallet repeatedly reminds users to back up their wallets through pop-up prompts, security tutorials, and other methods when creating a wallet. Especially in the current market where there are large differences in liquidity expectations and the frequency of asset transactions is increasing, properly keeping the mnemonic phrase is the core prerequisite for avoiding asset loss and ensuring investment security.
