Arthur Hayes Speculates Fed-Yen Intervention; Bitcoin Could Benefit

Arthur Hayes, BitMEX Co-founder, analyzed the yen’s depreciation and potential Federal Reserve intervention, published on X in January 2026.

Possible Fed intervention in the yen market could increase global dollar liquidity, influencing risk assets and potentially boosting Bitcoin’s value amidst currency fluctuations.

Federal Intervention: Impact on Yen and Global Markets

Hayes’ analysis highlights yen depreciation and a decline in Japanese government bond prices, triggering potential intervention by the Federal Reserve. The proposed strategy involves selling dollars to buy yen in the foreign exchange market to maintain exchange rates and investing in Japanese government bonds. This operation is expected to stabilize both the yen and Japanese government bonds, preventing Japanese investors’ divestments of U.S. Treasuries and promoting U.S. export competitiveness.

Market reactions echo Hayes’ insights, considering the Federal Reserve’s methods and potential intervention signals. Hayes emphasized the Fed’s balance sheet expansion. His views ignited discussions around the potential implications for Bitcoin and other risk assets, suggesting an optimistic outlook should the Fed intervene.

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“Very bullish if true for BTC. This assumes Fed prints dollar, creates banking reserves. dollars are then sold to buy yen. If the Fed is manipulating the yen, we will see its b/s grow via the Foreign currency denominated assets line item which comes out weekly in the H.4.1 release.” — Arthur Hayes, Co-founder, BitMEX and founder of Maelstrom fund.

Bitcoin’s Prospects Amid Possible Fed Actions

Did you know? An expanding Fed balance sheet through yen purchases could enhance crypto markets, aligning with historical patterns of asset price increases following liquidity infusions.

Bitcoin was priced at $89,156.88 with a market cap of 1.78 trillion USD, experiencing varied price changes over recent periods. The market dominance is at 58.98%. The data, derived from CoinMarketCap, show significant market activity reflecting as a response to broader financial developments.

Coincu research highlights potential monetary policy adjustments impacting market liquidity and Bitcoin.