Hayes: Stronger Yen Could Fuel Dollar Liquidity and Boost Bitcoin

Arthur Hayes, the co-founder of BitMEX and a crypto macro investor, believes that a stronger yen could be a catalyst for Bitcoin's price increase. He argues that if Japan and the US strengthen the yen through coordinated efforts, it may lead to greater dollar liquidity in global markets.

This, according to Hayes, would ultimately create a potential buying pressure on Bitcoin. To achieve this goal, Hayes suggests that Japan's Ministry of Finance could pledge its US Treasury holdings as collateral to the Fed via the FIMA facility. This move would allow them to borrow dollars without selling their Treasury bonds outright.

Hayes points out that Japan and the GPIF together hold approximately $1.373 trillion in US Treasuries, which are eligible as FIMA collateral. He also mentions that any increase to the FIMA facility's $60 billion per-counterparty cap would need approval from the Fed's Foreign Currency Subcommittee.

Hayes believes that this increased dollar liquidity could boost demand for Bitcoin and other crypto assets. He specifically highlights Ethereum, which failed to reach its all-time high in 2025, as a potential beneficiary of this scenario. Ethena (ENA) is also mentioned as a possible candidate for significant gains.