FIMA Expansion Could Boost Bitcoin and Ethereum Prices

Arthur Hayes believes that if the Federal Reserve expands its liquidity for Japan, it could support Bitcoin (BTC) and Ethereum (ETH) prices. According to Hayes, a larger Foreign and International Monetary Authorities repo facility (FIMA) would give Japan more dollars for yen intervention without forcing large U.S. Treasury sales.

Hayes estimates that Japan holds $1.143 trillion in Treasuries, while the Government Pension Investment Fund has another $230 billion, making their combined pool $1.373 trillion. He thinks a larger FIMA would allow Japan to borrow against these Treasuries and sell the dollars to buy yen.

Hayes predicts that this increased dollar liquidity will favor Bitcoin, gold, and Ethereum. He is increasing his exposure to these assets while watching for rule changes.