Arthur Hayes: Crypto Surge Possible Despite NASDAQ Dip
- The NASDAQ’s recent 5% drop may have triggered the cryptocurrency market’s downturn.
- Janet Yellen’s actions in increasing treasury bill issuance are influencing market liquidity and asset prices.
- The potential unwinding of Japanese carry trades could lead to significant changes in global financial markets.
In a recent analysis, Arthur Hayes examines how the NASDAQ’s 5% decline might influence the cryptocurrency market in a YouTube video. Hayes attributes the recent downturn in crypto prices to the drop in the NASDAQ. Hayes points to the USD/JPY chart as a key indicator for understanding the market dynamics.
For decades, Japan showed little interest in its currency, investing heavily in risk assets abroad using borrowed yen. Recently, the Japanese government’s decision to raise interest rates has prompted investors to unwind these trades. Hayes warns that this unwinding could potentially impact global risk assets, including Bitcoin and Ethereum.
The video delves deeper into the potential consequences of this unwinding on the crypto market. Hayes explains that Japan’s actions could trigger a major reallocation of capital, affecting crypto investm…
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