Hayes put a buy call for BTC in anticipation of US dollar liquidity as Japanese banking crisis worsens.Japan’s banking crisis is reportedly on the brink of exploding and could inject US ‘dollar liquidity’ and booston 20th June, BitMEX founder Arthur Hayes, viewed the potential impact of the Japanese banking crisis as a ‘pillar’ for the sector.According to Hayes, the fifth-largest Japanese bank, Norinchukin is already under strain and plans to sell $63 billion of its US and European bonds.
‘All the Japanese megabanks will follow in the footsteps of Nochu and dump their UST portfolio to make the pain go away. That means $450 billion worth of USTs will hit the market quickly. In response, the US could convince the Bank of Japan to use a repurchase facility program to ‘absorb the UST supply.’ In return, the US will hand over ‘freshly printed US dollars’ to the BoJ, spiking dollar liquidity.
To the BitMEX founder, the November US election was another play that could force the US to intervene in the Japanese banking crisis.