BITCOIN MAY HAVE A NEW LIQUIDITY CATALYST
Arthur Hayes is pointing at something the crypto market may be underestimating: Japan's yen crisis could become a dollar-liquidity story.
Japan is the largest foreign holder of U.S. Treasuries. A larger Fed FIMA facility could allow Tokyo to use Treasuries as collateral to obtain dollars and support the yen without dumping huge amounts of Treasuries into the market.
That matters for $BTC .
The Fed's balance sheet went from roughly $4.2T to $8.9T during the pandemic liquidity expansion. Bitcoin went from below $10K to nearly $69K during that broader liquidity cycle.
History doesn't guarantee a repeat.
But if Washington expands FIMA, the market could start pricing in easier global liquidity again.
And crypto LOVES liquidity.
The real signal to watch isn't Hayes' headline.
It's the Fed's balance sheet.
Would you bet on $BTC before the liquidity data confirms the story?
#BTC #Fed #liquidity #Japan #yen
Arthur Hayes is pointing at something the crypto market may be underestimating: Japan's yen crisis could become a dollar-liquidity story.
Japan is the largest foreign holder of U.S. Treasuries. A larger Fed FIMA facility could allow Tokyo to use Treasuries as collateral to obtain dollars and support the yen without dumping huge amounts of Treasuries into the market.
That matters for $BTC .
The Fed's balance sheet went from roughly $4.2T to $8.9T during the pandemic liquidity expansion. Bitcoin went from below $10K to nearly $69K during that broader liquidity cycle.
History doesn't guarantee a repeat.
But if Washington expands FIMA, the market could start pricing in easier global liquidity again.
And crypto LOVES liquidity.
The real signal to watch isn't Hayes' headline.
It's the Fed's balance sheet.
Would you bet on $BTC before the liquidity data confirms the story?
#BTC #Fed #liquidity #Japan #yen