Arthur Hayes, former CEO of BitMEX, who is talking about his target of $ 1 million in Bitcoin, explained in his last article an event that could cause BTC to rise.
According to Hayes, the currency struggle caused by the weakening of Japan's currency, the Yen, could result in a large amount of capital flowing into Bitcoin and a major rally.
Could Bring a Potential Big Rise to Bitcoin!
At this point, Hayes stated that the Japanese Yen was weakening rapidly against the US Dollar and said that the weakening yen would increase the export competition between China and Japan.
According to Hayes, if the Japanese yen weakens further, China will respond by devaluing the yuan.
At this point, Hayes, who thinks that the USA will be involved in the incident, said that the USA will allow the FED to make unlimited dollar-yen currency swaps with the Bank of Japan in order to prevent a yuan devaluation that would harm the manufacturing industry and could put pressure on Japan to strengthen the yen. he stated.
The famous name argued that the dollar would weaken as a result of these and that the weakening dollar could ignite a rally in risky assets such as BTC.
“The weaker their currencies, the more affordable their products will be.
If the Japanese yen weakens further, China will respond by devaluing the yuan.
If the yuan devalues and falls, production in China will become cheaper and businesses will lose the incentive to set up factories in the United States.
At this point, the USA will get involved and make a yen-dollar swap with the FED and the Bank of Japan.
These massive dollar swaps by the Fed will increase the supply of dollars globally, thereby weakening the dollar, but allowing China to stimulate its economy without devaluing the yuan.
“As a result, the dollar will weaken, but the weakened dollar will increase the prices of dollar-denominated assets such as US stocks and cryptocurrencies such as Bitcoin.”
*This is not investment advice.