Markets
Why Bitcoin’s price of $100,000 could be closer than ever ⋆ ZyCrypto
Bitcoin may be on track to reach the coveted $100,000 mark as the digital gold narrative gains popularity amid Japan’s banking crisis. Former CEO of BitMEX Arthur Hayes says the failure of Japanese banks will only push the Bitcoin and cryptocurrency markets higher.
Arthur Hayes Predicts Bitcoin Rally Amid Japanese Banking Crisis
Similar to the scenario with US banks in March 2023, BitMEX founder Arthur Hayes disputed on June 21 that Japanese banks would soon need a huge bailout due to large amounts of U.S. government bonds sitting on their balance sheets.
“You all know what this means for Bitcoin and cryptocurrencies… and that is why I felt it necessary to alert readers to another avenue for covertly printing money,” Hayes wrote. He noted that the price of Bitcoin has risen more than 200% since last year’s banking crisis and subsequent central bank bailout, to stand today at around $64,255.
This month, Japan’s fifth largest bank, Norinchukin, announced this plans to sell $63 billion value of US and European bonds by March 2025 as paper losses on those bonds have become unsustainable.
Hayes believes this is just a small part of a larger problem as, according to an IMF survey, Japanese banks collectively hold $850 billion in foreign bonds as of early 2022, including nearly $450 billion in U.S. bonds.
He suggests that a potential bond sale of this magnitude would be unacceptable to U.S. Treasury Secretary Janet Yellen.
“This cannot be allowed as yields would increase and make federal government funding extremely expensive,” Hayes said. “It will ask the Bank of Japan (BOJ) to purchase these bonds from the Japanese banks it supervises.”
To achieve this, Hayes proposes that the BOJ use its Foreign and International Monetary Authorities (FIMA) repo facility, allowing it to use U.S. Treasury securities as collateral in exchange for newly printed U.S. dollars. According to crypto OG, this scenario will result in more money printing, benefiting those who hold assets like Bitcoin.
Hayes then said he will transition from Ethena stablecoins to “crypto risk” and urged crypto investors to “buy the fucking dip.”
“This is just another pillar of the cryptocurrency bull market,” he summed up. “The supply of dollars must increase to maintain the current dirty Pax Americana dollar-based financial system.”
BTC price breakout points to $100,000
The price of Bitcoin is apparently limited by distance between $65,500 and $64,000 in the last few days. Some analysts expect the price movement of the alpha cryptocurrency to remain silent for the time being.
However, according to Hayes and other bullish analysts, the price of Bitcoin could reach new all-time highs in the coming weeks. Based on historical chart patterns, the leading cryptocurrency may be on the verge of breaking through the $100,000 zone. Popular cryptocurrency analyst Trader Tardigrade said in a June 21 article send:
“Bitcoin rests in the Resting Zone. This rest area is set here for the next Power Run. Don’t be surprised if $BTC sends to >$100,000 in a few weeks.”