Fed's 'Trillion-Dollar Yen Rescue' to Fuel Crypto Boom, Says BitMEX Co-Founder

Arthur Hayes, co-founder of BitMEX and chief investment officer at Maelstrom, believes the Federal Reserve will soon print trillions of dollars through its Foreign and International Monetary Authorities (FIMA) Repo Facility to rescue the Japanese yen.

This move would create a liquidity wave that ultimately pumps up Bitcoin (BTC) and other crypto assets, according to Hayes' thesis. He points out that Japan's Ministry of Finance can pledge its U.S. Treasury holdings as collateral to the Fed, which then prints dollars and lends them to Japan to buy yen.

The current FIMA rules cap loans at $60 billion per counterparty, but Hayes thinks the Fed's Foreign Currency Subcommittee has the authority to raise this cap without a congressional vote or published minutes.