Arthur Hayes: "Increased US Dollar Supply Inevitable, Crypto Bull Market Inevitable"

Arthur Hayes, co-founder of BitMEX, wrote on his Medium blog, "Increasing the supply of US dollars is inevitable if the corrupt global financial system based on the Pax Americana (world peace led by the US) dollar is to be maintained. This is just one more pillar of support for the crypto bull market." In this regard, he added: "US Treasury holders are selling bonds in a high interest rate environment. In fact, Norinchukin Bank (Agricultural Central Bank), Japan's fifth-largest bank by assets under management, recently announced that it will sell more than ¥10 trillion of U.S. and European government bonds this year.

However, the U.S. Treasury will not stand idly by and watch Treasury yields spike as a result of the massive bond sales, and will ask the Bank of Japan to buy the bonds. It will then utilize the "FIMA repo facility" to lend dollars against U.S. Treasuries as collateral. The FIMA repo will add dollar liquidity to global money markets, and we all know what that means for Bitcoin and cryptocurrencies. We just have to say 'whatever,' and take a dip-buying strategy." The FIMA repo facility refers to the Fed's program to lend dollars to foreign central banks and other monetary authorities against U.S. Treasury securities held by them.