Bitcoin may break its seclusion “sideways funk” According to BitMEX’s founder Arthur Hayes, if the United States Central Bank attempts to help a Japanese bond market in trouble by printing money.
Hayes proposed A theory was presented on Wednesday regarding the Federal Reserve “could be printing money to manipulate the yen and JGB [Japanese government bond] markets.”
Japan faces two crises: the yen’s weakness and an increase in government bond yields, which could lead to a financial crisis. loss of market confidence. It also affects the US, because Japanese investors may sell US Treasurys and buy JGBs with higher yields.
“Will a meltdown of the yen and JGB markets cause some sort of money printing by the BOJ [Bank of Japan] or the Fed? The answer is yes,” Hayes, said
“This discussion of Japanese financial markets is important because for Bitcoin to exit its sideways funk, it needs a healthy dose of money printing.”
The Fed’s liquidity-triggering mechanism is the Fed’s Intervention Mechanism
Hayes is convinced that the Fed will intervene by creating dollar reserves with banks like JPMorgan, selling dollars for yen — which strengthens the yen — then using yen to purchase JGBs, lowering Japanese bond yields.
The Fed is expanding its balance sheet. “Foreign Currency Denominated Assets,” He clarified.
“This Fed intervention is just what the filthy fiat system needs to limp along a little longer.”
Related: Bitcoin ‘groove’ to return despite gold, Nasdaq spotlight: Arthur Hayes
Hayes is putting money on his theory, and waiting to see if the central banks will move. money printersThis report, H.4.1 (Weekly Fed Balance Sheet), is a great way to keep an eye on what the Fed has been doing.
“Bitcoin fell as the yen strengthened against the dollar. I will not increase risk before I confirm the Fed is printing money to intervene in the yen and JGB markets,” He said.
Dollar “doing great” at four-year low
The US Dollar Index dropped to 95.6 on Tuesday, the lowest since January 2022. according TradingView.
US President Donald Trump maintained the dollar was still worth 10% more than it was a year ago. “doing great” On Tuesday, I gave a talk in Iowa.
“I mean, the value of the dollar, look at the business we’re doing. No, the dollar is doing great. You know it’s very interesting, if you look at China or Japan, I used to fight like hell with them because they always wanted to devalue their yen … you know that, the yen and yuan, and they’d always want to devalue it,” He told me. according CNBC.
“They devalue, devalue, devalue. And I said, ‘not fair.’ They devalue, because it’s hard to compete when they devalue.”
Magazine: GameStop ‘likely to sell’ Bitcoin holdings, Ethereum preps for quantum: Hodler’s Digest
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Source: cointelegraph.com
