Arthur Hayes Says Ignore Warsh and Watch EUR/JPY for Bitcoin’s Next Move

Hayes sees French banks as a potential fault line, with BNP Paribas, Credit Agricole, and Societe Generale tied to US repo lending.

Arthur Hayes, the chief investment officer of crypto family office Maelstrom, said in an essay published Thursday that traders should stop paying attention to Fed Chair Kevin Warsh’s hawkish comments and instead watch the euro-yen exchange rate for early signs of fresh dollar liquidity.

He argued that mounting funding stress at French banks will eventually force the Federal Reserve to print money to keep the US repo market working, a dynamic he sees as bullish for Bitcoin and the wider crypto market.

Hayes Points to EUR/JPY as His Liquidity Gauge

Hayes said EUR/JPY, trading near 185 at the time of writing, will fall to 140 or lower by next June. He tied that forecast to Treasury Secretary Scott Bessent’s effort to weaken the euro and strengthen the currencies of US allies in Asia, meant to make American exports more competitive.

Rather than let Japan, South Korea, and Taiwan sell their dollar holdings outright, Hayes said the plan is to route that capital through the Fed’s FIMA repo facility, and he noted Bessent has already sold euros for yen through the Treasury’s Exchange Stabilization Fund.