The post Arthur Hayes: Buy the Bitcoin Dip After Bank of Japan ‘Caved’ appeared on BitcoinEthereumNews.com.

With the Bank of Japan (BOJ) already backpedaling its world-shaking rate hike last week, BitMEX co-founder Arthur Hayes says it is time to ‘buy the fucking dip.’ “Just so I’m clear. BTFD! Because the BOJ caved,” Hayes tweeted on Wednesday. The day prior, BOJ Deputy Governor Shinichi Uchida told business leaders that the central bank would avoid raising interest rates amid financial market instability. The central banker’s words immediately injected confidence back into the Japanese stock market, with the NIKKEI recovering all of its losses from early Monday. The USD:JPY ratio is also back above 146, and the price of Bitcoin is back to $56,000 – up from its $49,750 low earlier this week. I’m assuming he came to this conclusion after a terse phone call from Bad Gurl Yellen who said stop that shit cause Harris has an election to win. pic.twitter.com/9iSSTbX71D — Arthur Hayes (@CryptoHayes) August 7, 2024 Hours earlier, Hayes published another macroeconomic analysis essay titled “Spirited Away”—outlining why the BOJ’s actions have decimated equities worldwide, and predicting how the world will likely respond. Specifically, raising interest rates above 0% collapsed the yen “carry trade,” whereby institutions borrowed yen extremely cheaply to buy USD-denominated assets that appreciated faster than their interest payments. With borrowing costs just slightly higher, “everyone rushes to cover simultaneously as the yen strengthens because they are highly leveraged,” Hayes explained. He argued that the United States will be forced to inject liquidity if higher yen borrowing costs continue to ravage global markets. That’s especially true with election season around the corner, and Kamala Harris wishing to keep her voters happy. “The question is when the Fed and Treasury will print money to blunt its effects on Pax Americana,” Hayes wrote. At that time, Hayes said Bitcoin could either be trading in “convex” or…

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Filed under: News - @ August 9, 2024 6:24 am