Arthur Hayes: Bitcoin May Hit $1M as Global Liquidity Expands
CryptoNewsTerminal Staff21 May, 2024
Arthur Hayes: Bitcoin May Hit $1M as Global Liquidity Expands
Arthur Hayes, the co-founder of BitMEX, believes Bitcoin (BTC) has the potential to reach $1 million as global liquidity expands. In a recent blog post, Hayes analyzed the current economic landscape and argued that policymakers are favoring quick fixes over difficult but necessary reforms. He pointed to the USD-JPY currency pair as an example, suggesting that the Federal Reserve and Bank of Japan could engage in unlimited USD-JPY swaps to manipulate the JPY lower without raising interest rates. However, Hayes warns that this strategy would lead to a weaker dollar, inflationary pressures, and a weaker JPY that could hurt China's export competitiveness and trigger a CNY devaluation. "Increasing global liquidity finds its way into crypto pushing prices higher," Hayes wrote. "Here is why you should be monitoring the USD-JPY cross and the size of the USD-JPY swaps." Hayes' analysis suggests that investors should pay attention to the USD-JPY currency pair and the size of USD-JPY swaps as indicators of future movements in the crypto market. If global liquidity continues to expand and policymakers opt for quick fixes, it could provide a tailwind for Bitcoin and other cryptocurrencies.
