๐๐ Bitcoin enthusiasts, buckle up! Former BitMEX CEO Arthur Hayes suggests a potential surge in Bitcoin prices due to the weakening Japanese yen! ๐๐ฑ
Hayes argues that the yen's rapid depreciation against the US dollar, thanks to a significant interest rate gap, is hurting Japan's export competitiveness against China. ๐จ๐ณ๐ฏ๐ต
To prevent a yuan devaluation that could harm US manufacturing, the US might push Japan to strengthen the yen. How? By having the Federal Reserve engage in unlimited dollar-yen currency swaps with the Bank of Japan. ๐ต๐๐ด
These colossal Fed dollar swaps would increase the global dollar supply, weakening the dollar but allowing China to boost its economy without devaluing the yuan. ๐๐ฒ๐
This weakening greenback could drive up the prices of dollar-denominated assets, including US stocks and cryptocurrencies like Bitcoin! ๐ฐ๐๐ป
Hayes sees this yen weakening pressure climaxing around the US election, prompting policymakers to act. This situation could be very bullish for Bitcoin as a hedge against rising global liquidity. ๐๐ช
Bitcoin has been on a roll this year, largely driven by ETF hype and demand, reaching $72,000 yesterday amid hopes of the US SEC approving Ethereum ETFs. ๐๐
However, many experts believe the real rally will begin once global superpowers like the US start reducing interest rates. So, keep your eyes on the market, Bitcoin lovers! ๐ง๐๐