Arthur Hayes, the BitMEX co-founder and crypto macro investor, argued on August 11, 2026, that a U.S.-Japan effort to strengthen the Japanese yen could ultimately inject more dollars into global markets, becoming a major liquidity catalyst for Bitcoin and other crypto assets.
Hayes’s arguments follow a coordinated US-Japan currency intervention earlier in August targeting the dollar-yen exchange rate.
Yen Hits a 40-Year Low
The yen fell past 163 to the dollar in late July, its weakest level in about 40 years, making imported goods more expensive for Japanese consumers.
Sponsored
On August 1, the US Treasury and Japan bought yen to support the currency — the first such joint intervention in more than a decade, sending the dollar down to around 156 yen.
In an essay, “Yen-quake” published on his Substack, Hayes argues the next step could be an expanded FIMA facility– a move he says could have major implications for Bitcoin.
Hayes Sees FIMA as the Next Move
Hayes identified three routes to a stronger yen: an aggressive Bank of Japan rate hike, asset sales by Japan’s Government Pension Investment Fund (GPIF), and use of the Fed’s FIMA repo facility.
FIMA is a Federal Reserve facility that allows foreign central banks to temporarily exchange their U.S. Treasury holdings for dollars without selling those bonds outright.
He said the first two carry political and economic costs that make them unrealistic, leaving FIMA as the most viable option.
Under this scenario, Japan’s Ministry of Finance would pledge US Treasury holdings as collateral to the Fed, borrowing dollars without selling the bonds outright. The Treasury would then sell those dollars for yen and reinvest in domestic bonds and stocks. Hayes said this expands the Fed’s balance sheet while avoiding disruption to the Treasury market.
Hayes pointed to Treasury Secretary Scott Bessent’s public calls for the Fed to raise the FIMA facility’s $60 billion per-counterparty cap as evidence the plan is advancing. Bessent’s remarks came days after the joint US-Japan currency intervention. Any increase to that cap would need approval from the Fed’s Foreign Currency Subcommittee, which operates under the FOMC.
Hayes estimated Japan and the GPIF together hold $1.373 trillion in US Treasuries eligible as FIMA collateral.
Why Bitcoin Could Benefit
Hayes links his thesis directly to Bitcoin. He argues that additional dollar liquidity would increase demand for financial assets, with Bitcoin among the assets most likely to benefit.
He also highlighted Ethereum as a large-cap sleeper candidate. ETH failed to “eclipse” its all-time high in 2025, and remains the foundational security layer for Real-World Assets (RWAs).
He also flagged Ethena (ENA), down more than 90% from its peak, as a candidate for a 5x to 10x gain if stronger dollar liquidity boosts Bitcoin and increases yields on Ethena’s USDe stablecoin.
Why This Matters
If the Fed expands the FIMA facility to support Japan’s yen defense, the resulting dollar liquidity could boost demand for Bitcoin and other crypto assets.
Delve into DailyCoin’s hottest crypto scoops today:
Memecoin TUT Becomes Most-Liquidated Token After 1,100% Rally
XRP Liquidity Hunt’s On: Red Clusters Sub-$1 Dictate Next Move