Arthur Hayes, former CEO and founder of cryptocurrency exchange BitMEX, made interesting predictions in his statement.
In a recent article, Arthur Hayes, one of the leading figures in the world of cryptocurrency, discussed the potential impact of cUS monetary policy towards Japanese banks.
Hayes predicts Japanese banks will sell large amounts of foreign bondsespecially US Treasury bills (UST). He predicts that the Bank of Japan will use the Fed’s FIMA repo facility to manage this situation. According to Hayes, this could potentially benefit Bitcoin and other cryptocurrencies by increasing dollar liquidity.
Hayes points out that the first banking disaster in the US financial system occurred in March 2023. The collapse of three major banks within two weeks prompted the Fed to provide comprehensive support to all UST holdings on the balance sheet of any US bank.
As expected, Bitcoin increased in price in the following months after the relief package was announced.
The increase in the FIMA repo base suggests that additional liquidity in dollars for global currency markets.
Hayes believes this is good news for Bitcoin and other cryptocurrencies. He warns readers that this is a secret way of printing money potentially driving the cryptocurrency market.
Hayes remembers the period from September to October 2023 when the UST yield curve steepens. This caused the S&P 500 to drop 20%, with 10-year and 30-year UST bonds trading at yields above 5%.
In response, Janet Yellen converted most of the debt issuance to short-term Treasury bills to free up cash deposited in the Fed’s Reverse Repo Program. This move revived the market and since November 1, all risk assets, including cryptocurrencies, have started to increase in price.
Arthur Hayes announces the two altcoins he invested in the most as Bitcoin dropped in price
