According to Dante Cook, the head of business at Swan Bitcoin, a weakening Japanese yen could have disastrous consequences for United States Treasurys. This, however, may benefit Bitcoin, as investors turn to alternative assets. Google Finance data reveals that the yen has declined by 2.39% against the US dollar over the past month. Cook explains that this situation is concerning because Japan holds the majority of US Treasurys, with only 4% of its forex reserves in gold. He suggests that Japan may be forced to sell off its US Treasurys in an effort to stabilize its currency unless the US government intervenes with swap lines or backdoor liquidity. Such a sell-off could create uncertainty in traditional securities and result in a significant influx of liquidity into the market, which could favor Bitcoin as investors seek safer investment options. Cook notes that Bitcoin has already experienced a surge in institutional investor interest since the approval of 11 spot Bitcoin ETFs by the US Securities and Exchange Commission in January. These ETFs have seen total net inflows of $11.78 billion since their launch. Currently, Bitcoin is trading at $61,399, representing a 6.29% increase over the past week. Cook predicts that the existing uncertainty in traditional financial markets will lead more people to explore Bitcoin and invest in riskier altcoins. He claims that due to the broken state of money, individuals are increasingly turning to gambling. Cook also highlights VanEck, a spot Bitcoin ETF issuer, which recently announced its MarketVector Meme Coin Index. He finds it surprising that an institution would offer such an index to retail clients, but he believes it is reflective of the uncertainty in traditional financial markets. The Meme Coin Index comprises Dogecoin (DOGE) at 30%, Shiba Inu (SHIB) at 28%, Pepe (PEPE) at 14%, Dogwifhat (WIF) at 13%, Floki (FLOKI) at 7%, and Bonk (BONK) at 6%. It is important to note that this article does not provide investment advice or recommendations, and readers should conduct their own research before making any investment decisions.
Swan predicts Bitcoin to benefit from emergency liquidity measure supporting the strengthening of the yen.