🏦 BoJ’s June Meeting Could Move Global Markets
The upcoming Bank of Japan (BoJ) policy meeting on June 16–17 may serve as the next major catalyst for Bitcoin and other risk assets. If the BoJ decides to restart quantitative easing (QE), as some expect, Arthur Hayes, co-founder of BitMEX, believes it could supercharge Bitcoin's price movement.
“If the BOJ delays QT and restarts selected QE... risk assets are going to fly.” — Arthur Hayes
💡 What Is Quantitative Easing (QE)?
QE is when a central bank buys bonds to inject liquidity into the economy. This lowers interest rates, stimulates borrowing and spending, and is typically used during economic downturns.
BoJ had announced plans in July 2024 to cut 400 billion yen per quarter in government bond purchases. However, with its June meeting approaching, reports suggest the BoJ might scale back those cuts or even resume QE, reducing bond tapering to 200 billion yen per quarter by 2027.
📈 Japan’s Bond Market Already Triggered Bitcoin’s Previous Rally
Bitcoin reached a new high of $112,000 on May 22, just two days after Japan’s 30-year bond yield hit an all-time high of 3.185%. That spike signaled investor anxiety over sovereign debt stability and prompted institutional investors to consider Bitcoin a hedge against sovereign risk.
“Bitcoin is free from counterparty risk,” noted André Dragosch of Bitwise.
🪙 Why Bitcoin Thrives in QE Environments
QE weakens fiat currencies and boosts asset prices—including Bitcoin. It’s no surprise that expectations of renewed QE are fueling bullish narratives:
- More liquidity → More demand for Bitcoin
- Declining trust in bonds → Increased hedge flows to BTC
- Sovereign debt fears → Greater institutional BTC adoption
📊 Eyes on $200K?
As Dragosch notes, if sovereign risks escalate and yields continue to climb, Bitcoin may be en route to $200,000, propelled by its independence from centralized financial systems.
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