Swan predicts Bitcoin to benefit from emergency ‘wall of liquidity’ supporting yen

According to Dante Cook, the head of business at Swan Bitcoin, a weakening Japanese yen could have dire consequences for US Treasuries, potentially benefiting Bitcoin as investors seek alternative safe havens. As of now, one yen is equivalent to 0.0064 US dollars, representing a decline of 2.39% over the past 30 days, according to data from Google Finance. Cook explains that this situation could spell disaster for both Japan and the US, as Japan holds the largest amount of US Treasuries, with only 4% of its forex reserves in gold and the rest predominantly in Treasuries. If the US government does not intervene with swap lines or provide backdoor liquidity, Cook argues that Japan will be forced to sell its Treasuries to support its currency. This sell-off could create uncertainty in traditional securities and result in a significant influx of liquidity into the market, potentially benefiting Bitcoin as investors search for safer alternatives. Cook notes that Bitcoin has already seen substantial institutional investor interest since the approval of 11 spot Bitcoin ETFs by the US Securities and Exchange Commission in January. These ETFs have garnered a total of $11.78 billion in net inflows, according to Farside data. Currently, Bitcoin is trading at $61,399, having increased by 6.29% in the past week, according to CoinMarketCap data. Cook goes on to suggest that the current state of uncertainty in traditional financial markets may lead to more individuals exploring riskier altcoins beyond Bitcoin. He claims that due to the broken state of money, more people are turning to gambling. Cook also highlights the recent move by VanEck, a spot Bitcoin ETF issuer, which has been underperforming in the ETF race but has recently introduced its MarketVector Meme Coin Index. While it may seem surprising for an institution to offer such an index to retail clients, Cook believes it is a reflection of the prevailing 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 decisions.