Former Bitmex CEO Arthur Hayes: A Weak Yen Solution Might Propel Bitcoin to $1 Million

Arthur Hayes, former CEO of Bitmex and current CIO of Maelstrom, has predicted the geopolitical and economic dynamics that will be taken to equilibrate the exchange rate between the U.S. dollar and the Japanese yen might propel bitcoin prices to $1 million. Hayes states that eventually, the U.S. will be forced to act by printing money and exchanging it for yens.

Arthur Hayes: A Weak Yen Solution Will Ratchet Bitcoin to $1 Million and Beyond

Bitcoin is becoming a global asset whose price is beginning to be affected by geopolitical and economic dynamics. Arthur Hayes, the former CEO of Bitmex and current Chief Investment Officer (CIO) of Maelstrom, has predicted that any action taken to correct the current weak yen situation would lead to the debasement of the U.S. dollar and consequently to the appreciation of bitcoin.

In his latest newsletter, “The Easy Button,” Hayes states that the exchange rate between the U.S. dollar and the Japanese yuan is the “most important global economic variable,” as its current instability will eventually guarantee an action from the Federal Reserve.

A too-weak yen will cause action from China, which will try to devalue its currency to maintain its competitiveness with Japanese products. In the same way, a weakening of the Chinese yuan will also create a difficult situation for the U.S. industrial complex, that will continue to push manufacturing abroad.

This is why Hayes stressed that the Federal Reserve might take the easy route and avoid the pitfalls associated with this scenario by just swapping freshly printed dollars for yens, allowing the Bank of Japan to unleash these trillion to intervene in the FX market. Also, this creates the conditions for China to continue printing yuans and increase its monetary expansion without creating imbalances in its economy.

However, if done wrongly, this risks ending the dollar hegemony as a reserve currency, given that it will lose a high percentage of its value against other fiat currencies and Bitcoin. Hayes assessed that if his theory is correct, “it is trivial for any institutional investor to buy one of the US-listed Bitcoin ETFs,” declaring bitcoin as the “best-performing asset in the face of global fiat debasement.”

“When something is done about the weak yen, I will mathematically guestimate how flows into the Bitcoin complex will ratchet the price to $1 million and possibly beyond,” he concluded.

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