Weakening Japanese Yen May Boost Bitcoin Over U.S. Treasury Bonds, Says Swan Bitcoin Executive
Summary:
The weakening of the Japanese yen could prompt trouble for US treasury bonds and potentially lead to an increased investment in Bitcoin (BTC), argues Swan Bitcoin's Head of Business, Dante Cook. He surmises that if the U.S. fails to offer swap lines, Japan may need to sell its U.S. treasuries, leading to a surge in market liquidity beneficial to Bitcoin. Cook also suggests the current uncertainty in traditional finance could result in a trend towards riskier crypto altcoins. He recently highlighted VanEck's new MEMECOIN index as an example of unconventional offerings within the finance market.
The weakening Japanese yen could spell trouble for US government bonds, possibly providing a golden opportunity for Bitcoin (BTC) as investors look for alternate secure investments, says a Swan Bitcoin executive. As of now, 1 JPY is equal to 0.0064 USD, decreasing 2.39% in value over the past 30 days, based on data from Google Finance. According to Dante Cook, Swan Bitcoin's head of business, this could potentially cause problems for both Japan and the U.S, as Japan is the biggest holder of U.S treasury bonds. Japan keeps only 4% of its forex reserves in gold, with the majority in U.S treasury bonds. Dante Cook suggested in a recent episode of Bitcoin Daily that, unless the U.S. government offers a currency exchange agreement, or swaplines, or provides liquidity through other means, Japan might have to sell its U.S. treasury bonds to stabilize its currency. Cook argues that such a move could instil doubt in traditional securities and lead to a huge inflow of liquidity into the market which may benefit Bitcoin as investors look for safer alternatives. In his opinion, Bitcoin is already experiencing an influx of capital from institutional investors since 11 Bitcoin spot ETFs were approved by the U.S Securities and Exchange Commission (SEC) in January. To date, the 11 spot Bitcoin ETFs have seen a total net inflow of $11.78 billion, according to Farside data. Bitcoin's price currently stands at $61,399, 6.29% higher over the last week, as evidenced by CoinMarketCap data. Cook added that the present uncertainty in conventional financial markets would likely result in a shift toward riskier crypto altcoins. He blamed the flawed monetary system for this shift, alleging it was pushing more people into speculative activities. In addition, Cook mentioned VanEck, a spot Bitcoin ETF issuer who's been underperforming recently but has just launched its MarketVector MEMECOIN index. Cook expressed his astonishment that such a product is offered to retail clients, however he also recognized that it isn't completely surprising, given the uncertainty in traditional financial markets. The MEMECOIN index contains Dogecoin (DOGE) pegged at 30%, Shiba Inu (SHIB) at 28%, PEPE (PEPE) at 14%, Dogwifhat (WIF) at 13%, Floki (FLOKI) at 7%, and Bonk (BONK) at 6%. Please note, the information provided in this article is not financial advice or recommendation, every investment and trading move involves risk. Readers should make their own thorough investigation before taking any decision.
Published At
5/9/2024 6:50:48 AM
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