Bitcoin (BTC USD) Breakout Has This Unusual Liquidity Catalyst

Former Bitmex CEO Arthur Hayes said the Bank of Japan’s latest policy could lead to a rise in Bitcoin (BTC USD).

He cited the central bank’s move to provide U.S. dollar liquidity as a key signal ahead of his presentation at WebX Tokyo on August 25.

BOJ’s Dollar Funding Plan Draws Attention From Hayes

Arthur Hayes has pointed to the Bank of Japan’s recent dollar liquidity action as a potential turning point for Bitcoin (BTC USD).

On July 17, the BOJ said it would begin supplying U.S. dollar funds against pooled collateral.

This marks a shift in its strategy, aiming to ease stress in global dollar markets. The move supports what Hayes outlined last year in his essay, Shikata Ga Nai.

More importantly, he argued that as dollar liquidity tightens, central banks would be forced to respond.

In his view, these responses could lead to more fiat currency entering the system, which might support the prices of riskier assets, such as Bitcoin.

Hayes said the BOJ’s latest step was in line with this idea. He plans to give a full breakdown of the topic during his talk at WebX Tokyo on August 25.

His presentation will focus on how actions like this from major central banks may play a role in the next stage of Bitcoin’s price.

Bitcoin (BTC USD) Inflows Rise After New Price Milestone

It is worth noting that in the days leading up to the BOJ’s announcement, the BTC/USD pair saw a sharp increase in activity.

CryptoQuant analysis revealed that on July 15, exchange inflows surged to 81,000 BTC, up from 19,000 BTC the previous week.

This came after the price of Bitcoin (BTC USD) hit a new high of around $123,000. Large holders and miners mostly drove the increase.

Likewise, Bitcoin miners also stepped up their selling. Outflows from their wallets reached 16,000 BTC on July 15, the biggest daily total since early April.

It is worth noting that nearly all of this Bitcoin was sent to exchanges. Basically, this suggests that miners sold into the rally but still, the market stabilized.

Ethereum saw a similar pattern. Daily exchange deposits reached 2 million ETH on July 16, nearly double the previous week’s figure.

This followed a price gain of over 130% since early April. In general, altcoin activity remained low.

Inflow transactions averaged around 21,000 per day, significantly below the levels observed during past market tops.

This may suggest that many investors were not yet taking profits across the broader crypto market.

Arthur Hayes Sticks With Long-Term Bitcoin Outlook

It is worth noting that Hayes has maintained his bullish targets for the price of Bitcoin BTC USD.

He has previously stated that the current market cycle could drive Bitcoin’s price close to $200,000 before a potential shift into altcoins.

He has also maintained his end-of-year projection of $250,000 for the BTC USD pair. In addition, earlier this year, Hayes predicted a long-term view that Bitcoin could reach $1 million by the end of 2028.

He linked this to ongoing pressure in U.S. treasury markets and expected changes in global capital flows.

These forecasts reflect the Arthur Hayes’ personal market perspective. While bold, they are based on macro trends he believes are currently forming in the market.

He sees central bank liquidity responses such as the BOJ’s as key factors that could help drive digital asset prices in the years ahead.

For now, the BOJ’s move marks a notable shift. Whether this will lead to sustained market moves remains to be seen.

However, it adds to a growing list of signs that global financial conditions may be entering a new phase.

Hayes will expand on these ideas in Tokyo next month, where his comprehensive analysis is expected to draw attention from both the cryptocurrency and traditional finance circles.