Arthur Hayes Says Bank Of Japan Rate Hike Could Boost Bitcoin To A Million

Hayes sees that as a result of this monetary policy framework, the yen could go as high as $200.

• According to Arthur Hayes, the Bank of Japan (BOJ) policy stance may attract capital to Bitcoin. 
• Loose BOJ policy indicates tolerance for yen depreciation and rising inflation.
• Following the rate hike, Bitcoin saw an uptick in its price, trading at the $87000 range, breaking previous selloff patterns. 

Arthur Hayes on Thursday night asked investors not to “fight” the policies set by the Bank of Japan, after the bank increased interest rates by 25 basis points to 0.75%. 

The BitMEX cofounder said on X  that the Bank of Japan (BOJ) was deliberately keeping interest rates low, even after inflation, which he thinks could move people towards risk assets like Bitcoin (BTC). He went on to say that Bitcoin’s price could even reach the $1 million mark. Adding to it, Hayes said the yen (JPY) could go as high as $200, trading $156 against the dollar at the time of writing.

Bitcoin was trading at around $87,017 on Thursday night, up 0.6% over the past day. On Stocktwits, retail sentiment around Bitcoin remained ‘extremely bearish’, accompanied by ‘low’ levels of chatter. 

BOJ Prioritizes Growth Despite Inflation Risks

Earlier in the day, BOJ decided to ramp up interest rates to 0.75%, a level last seen in 1995. The Bank of Japan thinks that inflation will slow down and get closer to its 2% objective over time, even if it keeps its loose monetary policy. The central bank is choosing to stimulate economic development by keeping interest rates very low, even negative, even though it could hurt the yen and accept a higher risk of inflation in the short run.

Bitcoin Defies Past Rate-Hike Selloff Pattern

Previously, Bitcoin researcher Quinten François reported that Bitcoin declined around 27% after the March 2024 rate hike, 30% after the July 2024 hike, and another 30% after the January 2025 increase, warning that another rate hike could result in liquidations and a major selloff in Bitcoin. However, following the Bank of Japan's most recent pronouncement, Bitcoin rose instead, while altcoins showed moderate signs of recovery, departing from the previous pattern.

Read also: Bitcoin Holds Firm In Risk-Off Crypto Session While Analysts Hint At Potential Altcoin Rally

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