BitMEX founder Arthur Hayes said potential Federal Reserve intervention to stabilize Japan’s bond market could become a liquidity catalyst for Bitcoin. He pointed to rising Japanese government bond yields alongside a weakening yen as signs of stress that may force coordinated action by the Bank of Japan and the Fed.
Hayes suggested Japanese investors could sell US Treasuries to rotate into higher-yielding domestic bonds, creating spillover risks for global markets. In response, he believes the Fed could expand its balance sheet by creating dollar reserves, intervening in currency markets, and indirectly supporting Japanese bonds, increasing overall dollar liquidity.
From Hayes’ perspective, Bitcoin tends to benefit from periods of monetary expansion rather than tightening. While he framed the scenario as conditional on central bank action, the comments reflect broader market sensitivity to cross-border liquidity dynamics and the role of Bitcoin as a potential hedge during periods of currency and sovereign debt stress.
