Arthur Hayes, the former CEO of Crypto Exchange Bitmex, suggested that If the main bank of Japan, the Bank of Japan (BOJ), decides to stimulate the economy by printing more money instead of trying to slow down the price increase, this could raise Bitcoin and Ethereum for a big leap.
Let’s see why!
Boj’s great decision on June 17
Boj has long been strict, saying that inflation is always above what they would like it. But with the next major meeting of the Central Bank to come June 17thHayes sees a chance for a different approach.
He thinks that if the boj stops tightening its money policy and starts to help the economy again by printing more money (quantitative relaxation, or QE), bitcoin could increase.
It is not just Bitcoin. Hayes stressed that if some people in Japan may not like the idea of easier money, it could mean good news for risky assets in general.
What’s going on in Japan?
Japan has been known to maintain its low interest rates for a long time compared to other countries such as the United States and Europe. This helps families and businesses to borrow money easily, but it also makes money from Japan, the yen, weaker. A weaker yen means that things that Japan buy other countries are more expensive.
The governor of the Bank of Japan, Kazuo Ueda, suggested that they do not rush to tighten the conditions of money, which could continue until 2026.
Given that other large central banks, such as the American federal reserve, have increased rates, the slow change of change in Japan gives investors a chance to borrow the yen at lower costs. Many see this as a way to invest in cryptocurrencies like Bitcoin, which is considered a safer paradise during inflation.
Silver flowing in bitcoin
If Japan decides to modify its money policy, it could trigger another great pump in crypto. Even Standard Charterd has updated Her previous forecasts for Bitcoin, predicting that she will now reach $ 200,000 by the end of 2025, compared to $ 120,000 in the second quarter.
This growing confidence is also reflected in the enormous entries of Bitcoin Etf, which have seen a cost Entrance of $ 386.2 million.
Bitcoin is currently negotiating around $ 109,487, up 2.5% in the last 24 hours, with a market capitalization of 2.18 billions of dollars.