Arthur Hayes' Conflicting Claim:
Fed Move Could Send Bitcoin Soaring
Summary
Arthur Hayes suggested that the Fed could expand its information to support Japan's new and credit operations.
We argue that such a move would not boost Bitcoin by increasing global dollar liquidity.
The market is watching the Fed's foreign currency holdings in its financial resources as a critical indicator.
Arthur Hayes argued that a potential shift in global monetary policy would create a strong bullish environment for Bitcoin and cryptocurrencies. The former BitMEX CEO suggested that the US Federal Reserve could expand its balance sheet to ease pressure on the Japanese yen and Japanese government bonds. In his analysis titled "Woomph," published on January 28th, Hayes stated that this process would create an indirect but effective increase in liquidity. The analysis focuses on how the Fed's potential actions could create a chain reaction in global markets.