EUR/JPY Drop Could Unleash Fresh Crypto Liquidity, Says Arthur Hayes

Arthur Hayes, Chief Investment Officer at Maelstrom, is predicting that a falling EUR/JPY could boost crypto liquidity. He attributes this move to the Federal Reserve's dollar printing and points out that reallocation signals a bigger pattern.

Hayes notes that in July, the New York Fed sold euros to help fund Japan's yen rescue using the Treasury's Exchange Stabilization Fund (ESF) rather than dollars.

He argues that the EUR/JPY trading at 183.86 as of September 3rd, could fall from around 185 to below 140 by June 2027, which would unlock a fresh wave of crypto liquidity.