Arthur Hayes: US and Japan Will Jointly Print Money to Depress USD/JPY, Bitcoin Will Enjoy Liquidity Dividend

TechFlow reports, August 11, according to BitMEX co-founder and Maelstrom Chief Investment Officer Arthur Hayes in his Substack column, US Treasury Secretary Bessent has publicly called for expanding the Fed FIMA (Foreign and International Monetary Authorities) repurchase facility mechanism, allowing the Japanese Ministry of Finance (MOF) to use its holdings of US Treasury bonds as collateral to borrow US dollars from the Fed, then exchange the US dollars for Japanese yen, thereby achieving yen appreciation without selling US Treasury bonds.

Hayes believes that this mechanism is essentially the Fed directly printing money, with its scale limit depending on the combined US Treasury bond holdings of the Japanese government and GPIF (Government Pension Investment Fund) totaling approximately $1.37 trillion. Once the Fed Foreign Currency Subcommittee (Foreign Currency Subcommittee) convenes a meeting and modifies FIMA rules, this "money printing switch" can be activated, without requiring Congressional approval or public hearings.

Hayes pointed out that the era of cheap yen is nearing its end, and a new round of USD liquidity expansion will drive up Bitcoin, gold, and gold mining company stock prices. He specifically named Ethereum (ETH) as a "large-cap sleeping target," and is bullish on Ethena (ENA) achieving a 5x increase after Bitcoin prices rebound. Currently, Maelstrom is heavily positioned in Bitcoin and waits to add further positions after the FIMA rule modifications are implemented.