Close Menu
    What's Hot

    Ethereum Rises 6.5% in the Last 24 Hours, Surpassing $3,800: Reasons Explained

    Aug. 7, 2025

    Co-Founder of Tornado Cash Convicted for Operating an Unlicensed Money Transmission Service

    Aug. 7, 2025

    Three Cryptocurrencies Demonstrating Bullish Momentum Due to Exchange Listings and Hype

    Aug. 7, 2025
    Facebook X (Twitter) Instagram
    X (Twitter) Telegram
    Chain Tech CatcherChain Tech Catcher
    Subscribe
    • Home
    • News
    • Bitcoin
    • Altcoin
    • Ethereum
    • Blockchain
    • Ripple
    • Cardano
    • All Posts
    Chain Tech CatcherChain Tech Catcher
    Home ยป Worsening Crisis in Japanese Banking Sector Could Spell Good News for Bitcoin
    News

    Worsening Crisis in Japanese Banking Sector Could Spell Good News for Bitcoin

    By adminJun. 22, 2024No Comments2 Mins Read
    Facebook Twitter LinkedIn Telegram Pinterest Tumblr Reddit WhatsApp Email
    Worsening Crisis in Japanese Banking Sector Could Spell Good News for Bitcoin
    Worsening Crisis in Japanese Banking Sector Could Spell Good News for Bitcoin
    Share
    Facebook Twitter LinkedIn Pinterest Email

    The Japanese banking crisis appears to be on the brink of a major escalation, which could lead to a injection of US dollar liquidity and boost Bitcoin (BTC) and the broader crypto market.

    In a blog post published on October 20th, BitMEX founder Arthur Hayes discussed the potential impact of the Japanese banking crisis, describing it as a key factor in the cryptocurrency market.

    “This is just another pillar supporting the bullish cryptocurrency market,” Hayes said. He emphasized that Japan’s fifth largest bank, Norinchukin, is under pressure and planning to sell $6.3 billion worth of US and European bonds.

    Read more:


    Breaking News: Standard Chartered Bank becomes one of the first global banks to enter the cryptocurrency trading

    Hayes suggested that the US may need to intervene to resolve the crisis, which could result in “injecting US dollar liquidity”.

    Potential benefits for Bitcoin
    The expert stated that Norinchukin’s sale of US Treasury bonds (UST) could prompt other major Japanese banks to follow suit.

    “All major banks in Japan could mimic Norinchukin’s actions, selling their UST investment portfolios to alleviate the situation. This could lead to a rapid exit of the $45 billion UST bond market,” Hayes said.

    However, Hayes pointed out that the US could intervene to prevent this situation from happening, as “yields will skyrocket,” making federal funding more expensive.

    To address this issue, the US could persuade the Bank of Japan (BoJ) to use repurchase agreements to “absorb the supply of UST”. In return, the US would provide the BoJ with “newly printed US dollars,” increasing dollar liquidity.

    Read more:


    Stablecoins will account for 10% of the world’s currency in the next decade

    Hayes also recalled a similar situation in the fourth quarter of 2023, which led to a rise in risk assets including cryptocurrencies. He also noted that the US banking crisis in the 200th month of 2023 resulted in a 10% increase in BTC after the bailout announcement.

    “In an election year, the last thing the ruling Democratic Party needs is a significant increase in government bond yields, which will affect the financial difficulties of the general electorate,” Hayes explained.

    Therefore, the next liquidity injection in the US may come from the Japanese crisis, providing an opportunity for cryptocurrency investors. Hayes advised investors to “buy on the dip”.

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email
    Previous ArticleWhy the US Presidential Election Might Impact Bitcoin Prices
    Next Article Cryptocurrency Stocks Plunge Amid Market Correction

    Related Posts

    Co-Founder of Tornado Cash Convicted for Operating an Unlicensed Money Transmission Service

    Aug. 7, 2025

    JPMorgan Launches Blockchain-Driven Repo Settlement Platform

    Aug. 7, 2025

    SEC Approves Liquid Staking for ETFs, Igniting Optimism in the Industry

    Aug. 6, 2025
    Add A Comment
    Leave A Reply Cancel Reply

    Top Posts

    Is the Bitcoin Correction Approaching Its Conclusion? Analyst Forecasts Upcoming Movement

    Feb. 26, 20259 Views

    Bitcoin Cash Poised to Break 250 Mark

    Nov. 28, 20198 Views

    Cardano ADA Moves Towards 060 Resistance Level

    Aug. 1, 20226 Views
    Don't Miss

    Ethereum Rises 6.5% in the Last 24 Hours, Surpassing $3,800: Reasons Explained

    Altcoin Aug. 7, 2025

    Ethereum Surges Amid Institutional DemandEthereum surged 6.63% in the past 24 hours breaking above $…

    Co-Founder of Tornado Cash Convicted for Operating an Unlicensed Money Transmission Service

    Aug. 7, 2025

    Three Cryptocurrencies Demonstrating Bullish Momentum Due to Exchange Listings and Hype

    Aug. 7, 2025

    Dogecoin Price Forecast: Analysts Anticipate Bullish Momentum Despite Short-term Correction Risks

    Aug. 7, 2025
    Stay In Touch
    • Facebook
    • Twitter
    • Pinterest
    • Instagram
    • YouTube
    • Vimeo
    About Us
    About Us

    Keep up with blockchain through Chain Tech Catcher. Gain insights on crypto, DApps, & innovations. Stay informed in this evolving landscape!

    X (Twitter) Telegram
    Most Popular

    Is the Bitcoin Correction Approaching Its Conclusion? Analyst Forecasts Upcoming Movement

    Feb. 26, 20259 Views

    Bitcoin Cash Poised to Break 250 Mark

    Nov. 28, 20198 Views

    Cardano ADA Moves Towards 060 Resistance Level

    Aug. 1, 20226 Views
    © 2025 Chain Tech Catcher All rights reserved.
    • Home
    • News
    • Bitcoin
    • Altcoin
    • Ethereum
    • Blockchain
    • Ripple
    • Cardano

    Type above and press Enter to search. Press Esc to cancel.