According to the founder of BitMEX, Arthur Hayes, the price of Bitcoin is set to reach $1 million due to the shooting of currency manipulation acts from central banks. According to Hayes, actions taken by the Federal Reserve and Bank of Japan (BOJ) will lead to shifts in the economy where the dollar-yen exchange rate is instrumental.
Hayes emphasizes that traditional methods like raising interest rates to strengthen the yen are not viable due to the risk of a meltdown in Japanese government bonds, owned significantly by the Bank of Japan. Instead, Hayes proposes an unlimited U.S. dollar “swap line” between the BOJ and Federal Reserve, allowing Japan to print more yen to strengthen its currency without interest rate hikes.
Instead, Hayes suggests unlimited U.S. dollar swap lines between the BOJ and Federal Reserve to strengthen the yen without raising rates, benefiting all parties involved. An increased money printing could drive up Bitcoin prices. However, at the time of writing the Bitcoin price was $70,149 with a 0.44% increase in the last 24 hours. Monitoring the dollar-yen exchange rate is crucial amidst these developments.
Also Read: Peter Schiff: Ethereum ETF Could Turn Bitcoin Bearish
