BTC May Break Out If Fed Steps In to Rescue Japan Bonds

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Bitcoin May Break Out If Fed Steps In to Rescue Japan Bonds

Written by Aaron S.,

Editor-In-Chief

Last Updated: January 28, 2026

Key Takeaways

Arthur Hayes said Bitcoin could rise if the US Federal Reserve prints money to support Japan’s struggling bond market;
Japan’s weak yen and rising bond yields may push investors to sell US Treasurys, which will affect both markets;
Hayes believes Fed intervention through dollar creation and yen purchases could expand liquidity and boost Bitcoin.

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Bitcoin May Break Out If Fed Steps In to Rescue Japan Bonds

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Bitcoin BTC $89,338.84 might finally see movement after weeks of trading flat if the US Federal Reserve steps in to support Japan’s bond market, according to BitMEX $15K founder Arthur Hayes.

He believes such support would likely involve printing more money, which often benefits Bitcoin.

Japan is facing two problems at once: its currency, the yen, is losing value, and bond yields are climbing.

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Hayes pointed out that this could also affect the US, as Japanese investors might sell their US Treasurys to buy local bonds offering better returns.

Hayes said, "Will a meltdown of the yen and JGB markets cause some sort of money printing by the BOJ (Bank of Japan) or the Fed? The answer is yes".

According to him, more money entering the system could give Bitcoin the push it needs. He added, "This discussion of Japanese financial markets is important because for Bitcoin to exit its sideways funk, it needs a healthy dose of money printing".

Hayes describes a possible path for how the Fed might act. It could create new dollar reserves through big banks like JPMorgan, exchange those dollars for yen to support Japan’s currency, and then use the yen to buy Japanese government bonds.

Doing so would help lower bond yields and expand the Fed’s balance sheet under the section titled "Foreign Currency Denominated Assets".

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