BitMEX co-founder Arthur Hayes: JPY arbitrage trading collapses, how is the crypto market after-market?

Politicians will take measures to stabilize the market by printing money and manipulating prices in order to be re-elected. Assuming Kamala Harris, as a Democratic presidential candidate, faces a potential financial crisis caused by the collapse of the Japanese company's yen carry trade, she needs to avoid a market collapse. Japanese companies conduct large-scale carry trades through the central bank's monetary easing policy. If the yen appreciates, carry trades will cause huge losses, forcing Japanese companies to sell foreign assets to buy back the yen. This will cause global market fluctuations, and US and Japanese stocks may fall sharply.

 

The impact on the cryptocurrency market includes: increasing the supply of US dollars by the Federal Reserve and the Treasury may increase market liquidity and have a positive impact on the cryptocurrency market; Bitcoin may react differently depending on market liquidity, rising in price when liquidity increases and falling when tightening.

 

Finally, the author also provides practical suggestions.

 

For more information, see Arthur Hayes: https://cryptohayes.substack.com/p/spirited-away