Arthur Hayes, the co – founder of BitMEX and chief investment officer of Maelstrom, believes that the Bank of Japan’s (BOJ) potential pivot to quantitative easing (QE) could fuel a Bitcoin rally.
The BOJ is set to make its next interest – rate decision at its monetary policy meeting on June 16 – 17. If the central bank delays its quantitative tightening (QT) plan and restarts QE, it may provide a significant catalyst for Bitcoin and other risk assets. QE refers to the central bank’s purchase of bonds to pump money into the economy, lower interest rates, and encourage spending during difficult financial conditions.
Japan’s monetary policy shift may create favorable conditions for Bitcoin. The weakening of the yen due to QE could increase liquidity in financial markets, making Bitcoin more appealing to Japanese investors as an inflation hedge. Additionally, exporters may convert their foreign earnings into cryptocurrency, and institutions may rebalance their portfolios from Japanese government bonds (JGBs) to digital assets. Notably, Japan’s Government Pension Investment Fund (GPIF) began exploring crypto allocations in April 2025, potentially channeling billions into the asset class.
The concerns around Japan’s sovereign bond market also play a role. Bitcoin rose to its all – time high of $112,000 on May 22, 2025, two days after the 30 – year yield on Japanese bonds reached a new all – time high of 3.185% on May 20. The rising yields signal investor concerns about fiscal sustainability and repayment risk, leading institutions to reconsider Bitcoin’s role as a hedge against sovereign default risks.
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