Latest Crypto Analysis by Arthur Hayes

The former CEO of the crypto exchange BitMEX has published an essay titled "Shikata Ga Nai." Here are the main points:

1️⃣ Japanese banks have found themselves in a difficult financial situation due to their investments in U.S. bonds.

2️⃣ Changes in monetary policy have led to significant losses due to interest rate differentials.

3️⃣ To avoid the harm from selling bonds on the open market, the Bank of Japan will implement a repo mechanism with the Federal Reserve.

4️⃣ Due to these factors, dollar liquidity will increase, which could potentially drive growth in the cryptocurrency market.

🧠 All brilliant things are simple!