According to Dante Cook of Swan Bitcoin, a falling Japanese yen could end in “drama” for US government bonds, which in turn is extremely bullish for Bitcoin. Why? Because investors would then flee to other stores of value assets, according to Dante Cook’s claim.
Problems for Japan and America?
“This could spell disaster for Japan and the US, as Japan is the largest investor in US government bonds. Only 4 percent of Japan’s forex reserves are in gold, the rest is almost exclusively in US government bonds,” Dante Cook explained in a May 8 episode of Bitcoin Daily.
Cook believes that unless the US government intervenes with swaplines – an agreement between two central banks to exchange currencies – or with some other form of liquidity, Japan is forced to sell its US government bonds to support its own currency.
He said the sell-off could create uncertainty in traditional assets and lead to a “huge wall of liquidity” entering the market and possibly flowing towards Bitcoin as investors look for safer and alternative assets to hold their wealth.
Bitcoin has been receiving such a “wave of liquidity” since the US Securities and Exchange Commission (SEC) approved the Spot Bitcoin ETFs on January 11, according to Dante Cook.
“The money is broken”
The current state of the market, according to Dante Cook, will see more and more people abandon traditional markets and may even overlook Bitcoin for even riskier altcoins.
“Because money is broke, more and more people are choosing to gamble,” Cook said.
As proof of this, Cook points to VanEck, a party that also launched a Spot Bitcoin ETF, but which is lagging behind the competition. VanEck’s response to this disappointing performance is to release its MarketVector MEMECOIN index.
“It is quite shocking that an institutional party wants to offer these types of products to private individuals, but in some ways it is to be expected,” with which Cook again points to the uncertainty in the markets.
The MEMECOIN index includes Dogecoin, Shiba Inu, PEPE, Dogwifhat, FLOKI and BONK.
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Source: https://newsbit.nl/zwakke-japanse-yen-is-drama-voor-vs-en-bullish-voor-bitcoin/
