Bitcoin, Ethereum Are Set for a 'Money Printing Bonanza,' Arthur Hayes Says

BitMEX co-founder Arthur Hayes projects that Bitcoin and Ethereum are poised to benefit from an impending 'money printing bonanza' driven by global macroeconomic shifts. According to Hayes, the primary catalyst is the unwinding of Japan's carry trade following an unscheduled meeting by Japan's Government Pension Investment Fund (GPIF) and G20 developments, which triggered a sharp drop in USD/JPY as Japanese capital repatriates. Hayes argues that two forces will accelerate U.S. dollar debasement: the expansion of the Federal Reserve's repo facility to lend dollars to Japanese institutions avoiding direct Treasury sales, and potential liquidity injections by European central banks to stabilize French banks holding Japanese-owned debt. Consequently, dollar weakness is expected to propel hard assets and major cryptocurrencies significantly higher. Hayes highlighted Ethereum as his largest position due to its favorable risk-reward setup, having lagged its 2021 all-time high. While forecasting that Bitcoin could breach new all-time highs by year-end, Hayes cautioned that political dynamics surrounding upcoming midterm elections might moderate the pace of immediate upward price momentum.