Former BitMEX CEO Arthur Hayes announces event that could start Bitcoin rally!

Former BitMEX CEO Arthur Hayes, who is talking about a Bitcoin $1 million target, explained in his last article an event that could cause BTC to rise.

According to Hayes, the exchange rate struggle caused by the weakness of the Japanese currency, the yen, could lead to large amounts of capital flowing into Bitcoin, leading to a large rally.

Could be a potential big boost for Bitcoin!

At this point, Hayes said the Japanese yen was weakening sharply against the U.S. dollar, and that a weaker yen would intensify export competition between China and Japan.

According to Hayes, if the Japanese yen weakens further, China will respond by devaluing the yuan.

At this time, Hayes, who believes that the United States will intervene in this case, said that the United States will allow the FED to conduct an unlimited dollar-yen currency swap with the Bank of Japan to prevent damage to the Bank of Japan due to the devaluation of the yuan. The manufacturing industry may put pressure on Japan to strengthen the yen. he said

The popular name claimed that this could cause the dollar to weaken and that a weaker dollar could trigger a rise in risk assets like BTC.

“The weaker the currency, the cheaper the products become.

If the Japanese yen weakens further, China will respond by devaluing the yuan.

As the yuan devalues ​​and falls, production in China becomes cheaper and companies lose incentive to set up factories in the United States.

At this point, the United States intervenes and performs a yen-dollar swap with the FED and the Bank of Japan.

These large-scale dollar swaps from the Fed would increase the global supply of dollars, weakening the dollar but allowing China to stimulate its economy without devaluing the yuan.

“As a result, the dollar will weaken, but a weaker dollar will increase the prices of dollar-denominated assets such as U.S. stocks and cryptocurrencies such as Bitcoin,” he said.

*This content is not investment advice.