Arthur Hayes: If the Fed were to intervene in the yen by printing money, it would be extremely bullish for Bitcoin

BlockBeats News, January 24th, BitMEX co-founder Arthur Hayes posted stating that if the related news (Japanese authorities may be preparing to intervene in the exchange rate) is true, it would be "extremely bullish" for Bitcoin (BTC). He analyzed that the logical premise is: The Federal Reserve creates bank reserves through "money printing," then sells dollars to buy yen, indirectly intervening in the yen exchange rate.

Hayes pointed out that if the Federal Reserve is indeed manipulating the yen, its balance sheet will show growth through the "foreign currency-denominated assets" item, a data point that can be verified in the weekly published H.4.1 report.

The above view is based on the recent yen seeing its largest single-day surge in almost six months, with the market speculating that Japanese authorities may be preparing to intervene in the exchange rate. Meanwhile, some traders have said the New York Fed has conducted a "rate check" with major banks, sparking associations with the Federal Reserve's involvement.