{"id":20788,"date":"2026-01-28T08:31:20","date_gmt":"2026-01-28T08:31:20","guid":{"rendered":"https:\/\/bitunikey.com\/news\/bitcoin-price-may-rise-if-fed-supports-japan-says-arthur-hayes\/"},"modified":"2026-01-28T08:31:26","modified_gmt":"2026-01-28T08:31:26","slug":"bitcoin-price-may-rise-if-fed-supports-japan-says-arthur-hayes","status":"publish","type":"post","link":"https:\/\/bitunikey.com\/news\/bitcoin-price-may-rise-if-fed-supports-japan-says-arthur-hayes\/","title":{"rendered":"Bitcoin price may rise if Fed supports Japan, says Arthur Hayes"},"content":{"rendered":"<p><\/p>\n<div class=\"post-detail__content blocks\">\n<p class=\"is-style-lead\">Arthur Hayes says stealth Fed support for the yen could expand dollar liquidity, weaken the DXY, and mechanically push Bitcoin and majors to new highs.<\/p>\n<div id=\"cn-block-summary-block_81e5821c71988793e69cde3a48429331\" class=\"cn-block-summary\">\n<div class=\"cn-block-summary__nav tabs\">\n        <span class=\"tabs__item is-selected\">Summary<\/span>\n    <\/div>\n<div class=\"cn-block-summary__content\">\n<ul class=\"wp-block-list\">\n<li>Hayes outlines a \u201cWoomph\u201d scenario where the NY Fed and U.S. Treasury quietly create dollar reserves to buy yen and JGBs, shoring up Japan\u2019s bond market.\u200b<\/li>\n<li>He argues any balance-sheet expansion would weaken the dollar index and \u201cmechanically\u201d levitate Bitcoin and quality altcoins as fresh liquidity chases risk assets.<\/li>\n<li>Bitcoin stalls near record territory while Ethereum and Solana trade in tight ranges as traders watch weekly Fed foreign-asset data for confirmation of the thesis.<\/li>\n<\/ul><\/div>\n<\/div>\n<p><!-- .cn-block-summary --><\/p>\n<p>Former BitMEX CEO Arthur Hayes is betting that quiet Federal Reserve intervention to support the Japanese yen could be the next spark for a renewed Bitcoin (BTC) rally, even as the market hesitates near record highs.<a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/cryptopotato.com\/arthur-hayes-predicts-bitcoin-rally-as-fed-signals-liquidity-boost\/\" target=\"_blank\" rel=\"nofollow\"><\/a>\u200b<\/p>\n<h2 class=\"wp-block-heading\" id=\"fed-yen-and-the-mechanical-bitcoin-trade\">Fed, Yen, and the \u201cMechanical\u201d Bitcoin Trade<\/h2>\n<p>In a new essay titled \u201cWoomph,\u201d Hayes argues that the Fed has both the legal room and the incentive to expand its balance sheet to stabilize Japan\u2019s currency and bond market, a move he believes would spill directly into crypto. \u201cBitcoin and quality shitcoins will mechanically levitate in fiat terms as the quantity of paper money rises,\u201d he wrote, tying any new dollar liquidity to higher nominal prices for risk assets.<\/p>\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\">\n<div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">\u201cWoomph\u201d is a an essay on my theory about how the Fed could be printing money to manipulate the yen and JGB markets. If true money printer go fucking BRRRR!<\/p>\n<p> <a rel=\"nofollow\" target=\"_blank\" rel=\"nofollow\" href=\"https:\/\/t.co\/VdCUcd784t\">https:\/\/t.co\/VdCUcd784t<\/a> <a rel=\"nofollow\" target=\"_blank\" rel=\"nofollow\" href=\"https:\/\/t.co\/loIlR5nOd0\">pic.twitter.com\/loIlR5nOd0<\/a><\/p>\n<p>\u2014 Arthur Hayes (@CryptoHayes) <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/twitter.com\/CryptoHayes\/status\/2016289759736504777?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"nofollow\">January 27, 2026<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n<p>Hayes sketches a scenario in which the New York Fed, acting with the U.S. Treasury, creates fresh dollar reserves to buy yen, which are then recycled into Japanese Government Bonds (JGBs) to strengthen the yen and cap yields. The point, in his view, is to keep Japanese investors from dumping U.S. Treasuries en masse, a selloff that could \u201cspike U.S. borrowing costs\u201d and undermine financial stability.<a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/cryptopotato.com\/arthur-hayes-predicts-bitcoin-rally-as-fed-signals-liquidity-boost\/\" target=\"_blank\" rel=\"nofollow\"><\/a>\u200b<\/p>\n<h2 class=\"wp-block-heading\" id=\"signals-theory-and-market-skepticism\">Signals, Theory, and Market Skepticism<\/h2>\n<p>Hayes sees recent market signals as clues that policymakers are already probing this path. He cites a January 23 \u201crate check\u201d by the New York Fed on the USD\/JPY pair and notes that QCP Capital analysts read the move as evidence of growing official concern over yen weakness. He interprets this as the Fed \u201cdeliberately and publicly telegraphing its intentions,\u201d even if no formal program has been announced.<a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/cryptopotato.com\/arthur-hayes-predicts-bitcoin-rally-as-fed-signals-liquidity-boost\/\" target=\"_blank\" rel=\"nofollow\"><\/a>\u200b<\/p>\n<p>The mechanism, he says, would likely run through the U.S. Treasury\u2019s Exchange Stabilization Fund, alongside the Fed\u2019s authority to hold foreign currency assets. \u201cBuffalo Bill Bessent can intervene in the currency markets\u2026 The Treasury taps the NY Fed to help manipulate the markets,\u201d Hayes wrote, adding that confirmation would appear in weekly increases in the \u201cForeign Currency Denominated Assets\u201d line on the Fed\u2019s balance sheet.<a rel=\"nofollow\" target=\"_blank\" rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/cryptopotato.com\/arthur-hayes-predicts-bitcoin-rally-as-fed-signals-liquidity-boost\/\"><\/a>\u200b<\/p>\n<h2 class=\"wp-block-heading\" id=\"prices-positioning-and-what-comes-next\">Prices, Positioning, and What Comes Next<\/h2>\n<p>For now, Hayes is explicit that his framework remains hypothetical: \u201cWhat I will present is a theory which the actual flow of money\u2026 doesn\u2019t support yet.\u201d He says his own trading stance depends on seeing the Fed\u2019s balance sheet actually expand, arguing that such a move would weaken the dollar index and \u201cprovide fuel for asset price inflation\u201d across global markets.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p>\n<p>Crypto traders remain cautious. Bitcoin has struggled to sustain levels above $90,000, recently trading near $89,000 after a brief dip below $88,000, underscoring lingering profit\u2011taking and macro uncertainty. Major altcoins are mixed: Ethereum changes hands around $3,000, up roughly 2\u20133 percent over the past 24 hours, while Solana trades in the low\u2011190 dollar area, with its 24\u2011hour range clustered between about $185 and $194.<a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/www.coinglass.com\/currencies\/ETH\" target=\"_blank\" rel=\"nofollow\"><\/a><\/p>\n<p>Other analysts are also watching Tokyo. Market commentator Micha\u00ebl van de Poppe has argued that renewed Bank of Japan bond support could \u201callow risk-on assets to continue moving,\u201d putting Japanese policy firmly on crypto traders\u2019 macro dashboards. For now, Hayes\u2019 thesis turns weekly Fed data into a potential trading trigger\u2014an abstract balance\u2011sheet line item that could, if he is right, become a very concrete catalyst for Bitcoin.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p><\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Arthur Hayes says stealth Fed support for the yen could expand dollar liquidity, weaken the DXY, and mechanically push Bitcoin and majors to new highs. Summary Hayes outlines a \u201cWoomph\u201d&hellip;<\/p>\n","protected":false},"author":1,"featured_media":3095,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-20788","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency"],"_links":{"self":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/20788","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/comments?post=20788"}],"version-history":[{"count":1,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/20788\/revisions"}],"predecessor-version":[{"id":20789,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/20788\/revisions\/20789"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media\/3095"}],"wp:attachment":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media?parent=20788"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/categories?post=20788"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/tags?post=20788"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}