Hayes Sees $60 Billion Cap Removal as Key Trigger for Bitcoin
Arthur Hayes believes that a $60 billion Federal Reserve limit on the Foreign and International Monetary Authorities (FIMA) Repo Facility is the next liquidity trigger for Bitcoin. This facility allows approved foreign official accounts to raise dollars against US Treasury collateral temporarily.
The current FOMC directive caps the total outstanding FIMA repo exposure at $60 billion per counterparty at any given time. Hayes wants to see this cap raised or removed, and he believes that broader eligibility and a larger facility would open up a larger liquidity channel for foreign official institutions.
Japan has already shown a willingness to deploy nearly $100 billion in two days to support the yen, and Treasury Secretary Scott Bessent has urged the Fed to expand FIMA as a way for Japan to obtain dollars without selling Treasuries in the market. Hayes believes that this would create the policy setup he needs to trade, and that a larger facility with wider counterparties would provide a strong liquidity tailwind for Bitcoin.