Arthur Hayes expresses his views on the reasons why the Federal Reserve's interest rate cut plan did not meet expectations

ChainCatcher message, BitMEX co-founder Arthur Hayes stated on his personal social media, "My view on why the Federal Reserve's interest rate cut plan did not meet expectations is as follows: Since Powell announced the September rate cut at Jackson Hole, Bitcoin has dropped by 10%. Why? I believe that rate cuts are beneficial for risk assets. The overnight reverse repurchase (RRP) pays an interest rate of 5.3%, while no Treasury bond with a maturity of less than one year has a higher rate. Money market funds (MMF) will shift funds from Treasury bonds to RRP, which is negative for liquidity. Since the Jackson Hole meeting, RRP has increased by $120 billion. I believe this situation will continue as long as Treasury bond rates remain below RRP."