Crypto investor Arthur Hayes warned on August 3 that markets should watch this week’s Federal Reserve H.4.1 release for signs that Japan used US Treasury holdings as collateral to obtain dollars during recent yen intervention efforts. Tokyo would have borrowed against its Treasury holdings instead of selling them, avoiding a rise in American yields. This move raises questions about how central banks may manage currency pressure without disrupting bond markets, with potential effects on global liquidity and risk assets like Bitcoin. Treasury Secretary Scott Bessent said his department remains in close contact with the Bank of Japan and Japan’s Ministry of Finance, and will not hesitate to participate in further joint intervention. At the time of writing, the global cryptocurrency market cap was holding near $2.2 trillion, with Bitcoin trading around $63,000, down about 1% on the day and over 4% across one week, while Ethereum sat near $1,800.
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