BitMex co-founder says weakening yen could see Bitcoin’s price top the $1 million mark
Arthur Hayes shared his opinion on the rising inflation in Japan & its potential impact on the trade price of Bitcoin (BTC).
Arthur Hayes is a co-founder of the Bitcoin trading platform BitMEX. He is a prominent figure in the cryptocurrency industry. He is known for his bullish stance on crypto, advocating for its potential to transform finance. Despite legal challenges, Hayes remains influential, often discussing the benefits of decentralization and the future growth of digital assets.
This week, Arthur Hayes published his newsletter to all of his followers on Substack. Hayes said that the weakening of the Japanese sovereign fiat currency the yen, may result in a big push for Bitcoin to show a big rally.
Hayes said that the monetary policies of the big economies of Japan, China, and the US are closely linked with his theory. He said that the dollar-yen exchange rate is very important for the global economy, as the Federal Reserve can use Treasury orders to swap dollars for yen with Japan’s central bank. So in this way, they can control the exchange rate without raising interest rates, which would be bad for the Bank of Japan.
According to Hayes, the Bank of Japan will have to back its Yen currency without selling US Treasurys, which in turn helps the U.S. Treasury by preventing it from becoming a forced seller and maintaining low yields.
Furthermore, Hayes explained that economic competition between China and Japan, particularly regarding export prices, could lead China to devalue its sovereign fiat currency yuan if the yen weakens and it would harm American manufacturers and increase outsourcing.
The BitMex co-founder speculates China might use its growing Gold reserves to back the yuan and destabilize Western financial systems.
To counter this, Hayes believed, the Federal Reserve might print dollars to exchange for yen, stabilizing the currency market and enabling China’s monetary expansion. And we all of us know very well that it could devalue the US dollar, boost Bitcoin’s value, and drive institutional investors to Bitcoin ETFs as a hedge against declining fiat currencies.
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