- Arthur Hayes said a U.S.-Japan stronger yen policy would expand dollar liquidity and help lift Bitcoin.
- He said the most favored scenario would be for Japan's Ministry of Finance to use U.S. Treasuries as collateral to tap the FIMA Repo Facility, obtain dollars, sell them and buy yen.
- He said joint foreign-exchange market intervention by the U.S. and Japan, along with discussion of an expanded FIMA repo limit, points to a policy shift that could become a powerful bullish driver for the digital-asset market.
Forecast Trend Report by Period
BitMEX co-founder Arthur Hayes said coordinated efforts by the U.S. and Japan to strengthen the yen could expand dollar liquidity and help drive a rally in Bitcoin.
In a Substack post titled "Yen-quake" published on August 10, Hayes wrote that Washington and Tokyo had begun working together to lift the yen's value, a process that could sharply increase dollar liquidity.
He outlined three ways to push the yen higher: aggressive rate hikes by the Bank of Japan; a shift by the Japanese government away from overseas assets and toward domestic investment; and a plan under which Japan's Ministry of Finance would use U.S. Treasuries as collateral to access the Federal Reserve's FIMA Repo Facility, obtain dollars, sell them and buy yen.
