Bitcoin Price Rises as Arthur Hayes Flags Potential Fed Liquidity Boost From Japan Bond

The Bitcoin price has surged 1.5% in the last 24 hours to trade at $89,551, as BitMEX founder Arthur Hayes suggests that a breakout could be fueled by central bank interventions, particularly if the Federal Reserve steps in to support Japan’s struggling bond market.

That comes as Japan is facing a dual challenge: a weakening yen and rising Japanese government bond (JGB) yields, which could trigger a shift of Japanese capital from US Treasurys to higher-yielding domestic bonds. Hayes theorizes that the Fed may respond by creating dollar reserves at banks like JPMorgan, selling dollars to buy yen, and using the yen to purchase JGBs.

This process would strengthen the yen, lower Japanese bond yields, and expand the Fed’s balance sheet under “Foreign Currency Denominated Assets,” effectively injecting liquidity into the financial system.

Dollar Slides and Fed Liquidity Speculation Grows

“Bitcoin fell as the yen strengthened against the dollar. I will not increase risk before I confirm the Fed is printing money to intervene in the yen and JGB markets,” Hayes noted, emphasizing the importance of monitoring the Fed’s weekly H.4.1 report.

The US dollar continues to weaken, with the Dollar Index (DXY) sliding to 95.6, its lowest level since January 2022. Over the past year, the greenback has lost roughly 10% of its value, though former President Donald Trump insisted in a recent speech that the dollar is “doing great,” criticizing Japan and China for devaluing their currencies.

Hayes’ theory highlights how central bank actions, currency fluctuations, and bond market dynamics could serve as key catalysts for Bitcoin’s momentum, suggesting that renewed liquidity from money printing may help push the cryptocurrency past its current resistance levels.

Bitcoin Price Analysis: Bullish Reversal From Major Support

Bitcoin’s 4-hour chart shows a clear bounce from a strong support zone around $85,000–$86,000. This area has held multiple times, and the latest dip was quickly bought up, which signals that buyers are still active.

The price is now trading near $89,600, suggesting the market is trying to stabilize after the recent pullback. The overall structure looks constructive rather than bearish. The drop from the January highs slowed as the price reached support, and instead of continuing lower, Bitcoin formed a higher low.

This is often an early sign of a bullish reversal, especially when it happens at a well-tested support level. As long as the price stays above this zone, the broader uptrend remains intact.

BTCUSDT chart Analysis. Source: Tradingview

On the upside, there is visible resistance between $90,000 and $92,000. A strong move above this area would confirm bullish momentum and likely attract more buyers. Above that, the next key zone sits around $96,000–$98,000, which matches the projected target on the chart and previous highs where the price was rejected before.

Momentum also supports a mild bullish bias. The RSI is above 50 and rising, showing improving strength without being overbought. This means Bitcoin still has room to move higher if buying pressure continues.

Bitcoin defended support, momentum is improving, and a move higher is possible. Holding above $86,000 keeps the bullish setup alive, while a clean break below that level would weaken the outlook.