Arthur Hayes: The Japanese yen crisis has forced the Fed to expand, and Bitcoin will be on the move

On August 11, the founder of BitMEX, Arthur Hayes, stated in Yen Quake that the Japanese exchange rate and the market pressure on Japanese domestic debt would force the Fed to intervene across the border, and that the Fed would release global dollar liquidity through first-tier traders who would lend the dollar, buy the yen and take over the Japanese debt, and expand the scale; this type of “shadow QE” would catalyse the rise in scarce risk assets, such as bitcoin, as well as the core macro variables that would break the current encrypted market landscape. It presupposes that the short-term Japanese yen fast-moving will crush encryption, and that, once the Fed’s expansion signal is down, the incremental liquidity will continue to flow to bitcoin; Japan holds large-volume US debt, and allowing the Japanese yen to collapse will trigger a Japanese debt to push US financing costs up, and is a central driver of US intervention。