US-Japan Currency Intervention to Fuel Bitcoin Surge, Says BitMEX Co-Founder
Arthur Hayes, co-founder of BitMEX and Chief Investment Officer of Maelstrom, has published a report titled 'Yen-quake' where he predicts that US-Japan yen-strengthening measures will fuel a Bitcoin surge.
In the report, Hayes analyzes that the U.S. and Japanese governments are moving towards coordinated intervention aimed at driving down the USD/JPY exchange rate using the Federal Reserve's FIMA Repo Facility.
Hayes presents three options for achieving a stronger yen: aggressive interest rate hikes by the Bank of Japan, government-led compression of Japan's external assets and incentives for domestic capital repatriation, or dollar funding via the FIMA Repo facility combined with yen-buying intervention.
He points out that the third method is the most acceptable and realistic solution for both Japan and the United States, as it can supply dollars without expanding the Fed's balance sheet.