According to Cointelegraph: Swan Bitcoin executive, Dante Cook, suggests that if the dropping Japanese yen continues its decline it could spell catastrophe for US treasuries. This adverse scenario, however, could have a positive impact on Bitcoin (BTC) as investors potentially seek alternative stores of value.
According to Google finance data, currently, 1 JPY equals 0.0064 USD, losing 2.39% strength over the past 30 days. Cook warns that these deteriorating circumstances might manifest negatively for both Japan and the U.S as Japan remains the biggest holder of U.S. treasuries.
Unless interventions by the U.S. government such as swaplines or backdoor liquidity are implemented, Cook argues that these could force Japan to offload its U.S. treasuries to support its own currency. Such a mass sell-off can incite unpredictability in traditional securities and send a "massive wall of liquidity" into the market, which could be advantageous to Bitcoin as an alternative safe haven for investors.
Bitcoin (BTC) has already been witnessing a wave of liquidity from institutional investors since the US SEC approved 11 spot Bitcoin ETFs in January.
Apart from Bitcoin (BTC), Cook suggests the present state of uncertainty in conventional financial markets could lead to increased interest in riskier crypto altcoins.
In addition, he briefly mentions VanEck, a spot Bitcoin ETF issuer which has launched the MarketVector MEMECOIN index, underscoring the unreliability in traditional financial markets.
