Bank

Bitcoin

Impact

Arthur

Propel

<h2 id="key-points">Key Points</h2> 
<ul> 
 <li>BitMEX founder Arthur Hayes predicts a boost for Bitcoin due to the looming Japanese banking crisis.</li> 
 <li>Another analyst suggests that Bitcoin’s growth will only occur once the miner crisis is resolved.</li> 
</ul> 
<p> Arthur Hayes, the founder of BitMEX, believes that the impending banking crisis in Japan could lead to a surge in the value of Bitcoin (BTC).</p> 
<p>Hayes suggests that the crisis could lead to an injection of US ‘dollar liquidity’, which would benefit the overall cryptocurrency market.</p> 
<h2 id="the-japanese-banking-crisis">The Japanese Banking Crisis</h2> 
<p>The Japanese banking crisis is reportedly on the verge of erupting. Hayes sees this potential crisis as a significant factor for the cryptocurrency sector.</p> 
<p>He notes that Norinchukin, the fifth-largest Japanese bank, is already under pressure and plans to sell $63 billion of its US and European bonds.</p> 
<p>Hayes suggests that the US might need to intervene to resolve the crisis, leading to a ‘stealth dollar liquidity’ injection.</p> 
<h2 id="impact-on-bitcoin">Impact on Bitcoin</h2> 
<p>According to Hayes, a sell-off of US Treasury (UST) by Norinchukin could prompt other large banks to do the same.</p> 
<p>He explains that the US might not allow such a situation because it would lead to a spike in ‘yields’, making it very expensive for the federal government to fund.</p> 
<p>In response, the US could persuade the Bank of Japan (BoJ) to use a repurchase facility program to ‘absorb the UST supply.’</p> 
<p>In exchange, the US would give ‘freshly printed US dollars’ to the BoJ, leading to an increase in dollar liquidity.</p> 
<p>Hayes also points out that a similar situation occurred in Q4 2023, which led to a boost for all risk assets, including cryptocurrencies.</p> 
<p>In addition, the US banking crisis in March 2023 resulted in a +200% surge in Bitcoin value after a bailout was announced.</p> 
<p>Hayes believes that the upcoming US election could force the US to intervene in the Japanese banking crisis.</p> 
<p>He suggests that the next US liquidity injection could come from the Japanese crisis, which would be beneficial for cryptocurrency investors.</p> 
<p>However, another analyst, Willy Woo, argues that Bitcoin’s growth will only occur once the miner crisis is resolved.</p>

Japan’s Banking Crisis May Propel BTC Momentum, Forecasts Arthur Hayes

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