Feds' Japan Liquidity Plan Could Fuel Bitcoin Rally

Arthur Hayes believes that if the Federal Reserve opens Japan's $1.373 trillion Treasury pool, it could lead to a Bitcoin rally.

The BitMEX co-founder argues that an expanded FIMA repo facility would allow Japan to borrow more dollars and sell them to buy yen without having to sell U.S. Treasuries directly.

This would increase dollar liquidity, which Hayes thinks would favor assets like Bitcoin (BTC), gold, and Ethereum (ETH).

However, the expansion of FIMA still depends on Federal Reserve action, and some economists have cautioned that it may not address the underlying issues facing the yen.