Arthur Hayes Predicts Japanese Banking Crisis Will Raise Bitcoin Prices
The banking system in Japan is in trouble, which could be positive for Bitcoin and other cryptocurrencies.
Similar to the US banking crisis in early 2023, it is predicted that Japanese banks may soon need a significant financial rescue operation due to depreciating US government bonds.
Arthur Hayes, one of the founders of BitMEX, states that he is concerned about the effects of such a rescue operation on the cryptocurrency markets and predicts a significant rise.
As Japan's banking crisis approaches, Arthur Hayes predicts an uptrend for Bitcoin and cryptocurrencies and attributes this to monetary policies and interventions.
Banking Turmoil in Japan: Echoes of the US Crisis
Financial instability at Japanese banks mirrors turmoil seen in the U.S. banking system months ago. Arthur Hayes highlights the possibility of a major financial rescue operation for Japanese banks; as did the rapid intervention of the US Federal Reserve and the Treasury Department after the Silicon Valley Bank collapse last year. Catalyst? Large losses from depreciating US government bonds on their balance sheets.
Norinchukin Bank's Large Bond Sale
In the latest development, Japan's fifth largest bank, Norinchukin, announced that it plans to liquidate $63 billion of US and European bonds by March 2025. This striking decision stems from the unsustainable paper losses accumulating on these assets. Hayes states that this move is just the beginning, that Japanese banks own foreign bonds worth $850 billion in total, and that by 2022, approximately $450 billion of this figure consists of US Treasury bonds.
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