Arthur Hayes Sees Government Money Printer Going 'BRRR' If US Intervenes To Bolster The Japanese Yen And That Could Be Good For Bitcoin

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Arthur Hayes, Chief Investment Officer at Maelstrom Fund, explored successful an effort published Tuesday however a imaginable involution by U.S. authorities to enactment the Japanese yen could boost hazard assets similar Bitcoin (CRYPTO: BTC).

In the effort titled "Woomph," Hayes argued that the Treasury Department, successful coordination with the Federal Reserve, could merchantability dollars and bargain yen, solving “many fiscal problems” for the Trump administration.

“This volition fortify the yen against the dollar, which volition assistance U.S. export competitiveness,” Hayes said.

He added that this would propulsion Japanese Government Bond yields lower, discouraging backstage Japanese investors from selling U.S. Treasuries to bargain Japan’s sovereign debt.

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Hayes suggested that the Federal Reserve could grow its equilibrium expanse by printing much money, referencing the “Money Printer Go Brrr” meme. The resulting monetary expansion, helium added, would trigger a Bitcoin “pump.”

The gait of yen appreciation, however, should beryllium “gradual.”

“It cannot admit excessively quickly, different it would origin catastrophic losses for investors who borrowed yen to money different plus purchases arsenic volatility rose,” the co-founder of cryptocurrency exchange BitMEX said.

Hayes urged investors to proceed cautiously, saying helium won’t summation his BTC holdings until the Fed’s equilibrium expanse shows a week-over-week emergence successful “Foreign Currency Denominated Assets.”

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Hayes’ comments came amid “suspected” U.S. involution successful the yen market. Reports suggested that the Federal Reserve Bank of New York began contacting banks to inquire astir their USD/JPY presumption sizes.

Interestingly, the U.S. Dollar Index and the Japanese Yen Currency Index diverged arsenic these reports trickled in.

However, the reports suggested the Fed did not intelligibly pass that it was acting solely connected behalf of Japanese authorities.

Source: Trading View

The U.S. Dollar Index has dropped to a four-year debased of 95.66 against a handbasket of different currencies. The currency is down 2.09% implicit the past month, and 10.6% since Trump took bureau past year, amid increasing fiscal, macroeconomic and monetary uncertainties.