Big Bull Arthur Hayes Makes Bold Statements: “The Fed and Japan Will Pump Bitcoin”

BitMEX co-founder and crypto investor Arthur Hayes has presented a new scenario that could trigger Bitcoin’s next surge.

According to Hayes, a move by the Fed to rescue troubled markets in Japan, presented as a “currency intervention,” could drive up the price of Bitcoin.

In his latest assessment, Hayes argued that the Fed could buy Japanese yen by printing dollars, and then use those yen to purchase Japanese government bonds (JGB). He stated that such a move would expand the Fed’s balance sheet, effectively amounting to a new round of quantitative easing.

Hayes, who stated that “Bitcoin will rise as the Fed’s balance sheet grows,” criticized those who try to time the price with short-term, highly leveraged trades, while arguing that in the long term, Bitcoin and “quality altcoins” will mechanically appreciate in value against fiat currencies. Hayes had previously predicted that Bitcoin was “squeezing” towards and above $110,000.

While gold and commodity prices are soaring to record highs, Hayes noted that Bitcoin is hovering around $90,000 despite Trump’s return to the White House and pressure on the Fed to raise interest rates. He interpreted this situation as a possible catalyst for the Fed to act, suggesting that the bond market crisis in Japan could be a factor. “For Bitcoin to emerge from this stagnation, healthy monetary expansion is needed,” he said.

According to Hayes, Japanese financial markets are sounding the alarm. The sharp depreciation of the yen against the dollar and the rapid rise in Japanese bond yields indicate weakening investor confidence. Hayes notes that because Japan is a net energy importer, the weak yen also imports inflation, and argues that falling bond prices are causing significant unrealized losses for the Bank of Japan.

Hayes pointed out that Japan holds approximately $2.4 trillion in US Treasury bonds. He stated that if Japanese bond yields continue to rise, Japan may be forced to sell US bonds to buy its own, which could increase US borrowing costs. He noted that this is a scenario the Trump administration wants to avoid.

According to Hayes, US Treasury Secretary Scott Bessent could initiate the process through the Exchange Stabilization Fund (ESF), which allows for intervention in currency markets without requiring congressional approval. However, Hayes noted that the Treasury does not have the authority to print money, stating that the ultimate decision-maker will be the Fed.

*This is not investment advice.