Former Bitmex CEO Arthur Hayes commented on the recent actions of the Bank of Japan, suggesting their potential influence on Bitcoin prices.
Bank of Japan's Dollar Funding Plan
On July 17, the Bank of Japan announced it would begin providing U.S. dollar liquidity, which could lead to significant shifts in the cryptocurrency market. Hayes remarked that this could support price increases for riskier assets like Bitcoin, as central banks are forced to react to changing liquidity conditions, potentially injecting more cash into the system.
Increased Bitcoin Inflows
Leading up to the BOJ's liquidity announcement, a sharp increase in Bitcoin activity was observed. According to CryptoQuant, the BTC/USD inflow surged to 81,000 BTC, significantly up from only 19,000 BTC the previous week. This surge was primarily driven by large holders and miners.
Arthur Hayes' Outlook on Bitcoin Future
Hayes remains bullish on Bitcoin's future, predicting its price could approach $200,000 in the current market cycle. He also noted that Bitcoin could reach $1 million by 2028, reflecting his views on current macroeconomic trends.
The Bank of Japan's move to provide dollar liquidity sets the stage for potential Bitcoin growth, with expectations of central bank liquidity management significantly impacting cryptocurrency prices in the coming years.
