A Fed move to backstop Japan bonds could boost Bitcoin: Arthur Hayes - Source: CoinTelegraph

Bitcoin could break out of its “sideways funk” if the United States central bank attempts to support a failing Japanese bond market by printing money, according to BitMEX founder Arthur Hayes.

Hayes proposed a theory on Wednesday about how the Federal Reserve “could be printing money to manipulate the yen and JGB [Japanese government bond] markets.”

Japan faces a dual crisis: the yen is weakening while Japanese government bond yields are rising simultaneously, signaling a potential loss of market confidence. This also impacts the US because Japanese investors might sell US Treasurys to buy higher-yielding JGBs instead.