[Former BitMEX CEO Arthur Hayes announces activities that may trigger a Bitcoin rally! 】
In his latest article, Arthur Hayes mentions his prediction for Bitcoin to target a value of $1 million and explains the events that could prompt Bitcoin to rise.
According to Hayes, currency struggles triggered by the depreciation of the yen could lead to large inflows into Bitcoin and trigger a surge.
The rapid depreciation of the yen against the US dollar will increase export competition between China and Japan. If the yen depreciates further, China will devalue the renminbi in response.
Hayes believes that the United States will step in and allow the Federal Reserve to conduct unlimited dollar-yen currency swaps with the Bank of Japan to prevent the depreciation of the yuan from harming the manufacturing industry and may pressure Japan to strengthen the yen.
Hayes believes that these measures will lead to a weakening of the U.S. dollar, which may trigger a rise in risk assets such as Bitcoin.
"The weaker the currency, the cheaper the products. If the yen depreciates further, China will devalue the yuan. If the yuan depreciates, China's production costs will decrease, and companies will lose the incentive to set up factories in the United States. At this time, the United States will step in and pass The Fed's large-scale dollar swap with the Bank of Japan will increase the global supply of dollars, thereby weakening the dollar, but allowing China to stimulate the economy without devaluing the yuan. As a result, the dollar weakens. "A weaker dollar will push up the prices of dollar-denominated assets, such as U.S. stocks and cryptocurrencies such as Bitcoin."
