Fed to Print Trillions, Bitcoin Sees Opportunity Amid Yen Strength

Financial expert Arthur Hayes believes that the Federal Reserve will have to print trillions of dollars to defend the Japanese yen, and he thinks Bitcoin is a top bet to capture that liquidity wave. According to Hayes, the yen has lost more than half its value since 2012 after the Bank of Japan printed money for a decade to suppress bond yields.

This move may have worked for global asset markets but destroyed ordinary Japanese purchasing power, and both the U.S. and Japan now want the yen stronger.

Hayes argues that there are no realistic alternatives to printing more dollars, as raising interest rates aggressively would lead to significant losses on trillions of dollars in Japanese government bonds held by the BOJ, while selling US treasuries would destabilize the American bond market.