Bitcoin could break out of its recent sideways trading if the US Federal Reserve intervenes to stabilise Japan’s bond market through money printing, according to BitMEX founder Arthur Hayes.
Hayes said Japan faces a dual strain from a weakening yen and rising government bond yields, a combination that could force central bank action and spill over into global liquidity conditions.
“Will a meltdown of the yen and JGB markets cause some sort of money printing by the BOJ or the Fed? The answer is yes,”
Hayes said, adding that Bitcoin needs “a healthy dose of money printing” to move higher.
He argued the Fed could intervene by creating dollar reserves at major banks, selling dollars for yen to support the currency, and then using yen to buy Japanese government bonds, expanding its balance sheet in the process.
“This Fed intervention is just what the filthy fiat system needs to limp along a little longer,”
Hayes said, describing such action as a potential liquidity trigger for Bitcoin.
Hayes said he is watching the Fed’s weekly balance sheet data before increasing risk exposure, noting that Bitcoin previously fell as the yen strengthened against the dollar.
The comments come as the US dollar index has slid to its lowest level since early 2022, even as President Donald Trump insisted this week that the dollar is “doing great” despite recent weakness.
At the time of reporting, Bitcoin price was $89,127.51.