Arthur Hayes Announced the Development That Could Fuel the Rise of the Cryptocurrency Market! BitMEX founder Arthur Hayes shared the factors that will bring a rise to the cryptocurrency market.

In his blog post dated June 22, Arthur Hayes included the current situation of the markets and noted that factors based in the USA and Japan could trigger the rise.

The article stated that while Japanese banks are predicted to sell large amounts of foreign bonds, especially USTs, the Bank of Japan will likely use the Fed's FIMA repo facility to manage this.

It was emphasized that this situation will create an increase in liquidity in the market and may bring an increase in risk products, including cryptocurrencies.

In September and October 2023, US Treasury Bond (UST) yields increased, causing the S&P 500 to fall by 20%. 10- and 30-year USTs reached returns of over 5%.

In response to this situation, Treasury Secretary Janet Yellen shifted borrowing to short-term Treasury bills and stimulated the markets by unloading the cash held in the Fed's Reverse Repo Program. Since November 1, risky assets, including cryptocurrencies, have experienced a rapid rise.

Impact of US elections

Since it is an election year and the President risks losing, Yellen is expected to ensure yields remain low to prevent a financial market disaster. It would be enough for Yellen to instruct Japanese banks not to sell US Treasuries in the public markets and to use the FIMA repo facility instead.

In summary, the Japanese banking system can support the markets by providing dollar liquidity to crypto investors. This could be another leg of the crypto bull market. The supply of dollars must increase to sustain the Pax Americana dollar-based financial system

Hayes used the declines in the market as a buying opportunity by saying “Shikata Ga Nai”