Bank of Japan’s QE pivot could spark Bitcoin rally, says Arthur Hayes, as investors eye BTC as a hedge amid rising bond yield concerns.
The forthcoming monetary policy meeting of the Bank of Japan (BOJ) in June has the potential to serve as the next substantial catalyst for global risk assets, including equities and cryptocurrencies.
The Bank of Japan is scheduled to make its subsequent interest rate decision during its forthcoming monetary policy meeting on June 16–17.
Arthur Hayes, co-founder of BitMEX and chief investment officer of Maelstrom, believes that the central bank may serve as the next substantial catalyst for Bitcoin and other risk assets if it transitions to quantitative easing (QE).
“If the BOJ delays QT and restarts selected QE at its June meeting, risk assets are expected to soar,” Hayes stated in a June 10 X post.
Central banks engage in quantitative easing (QE) by purchasing bonds and injecting funds into the economy to reduce interest rates and stimulate expenditure during challenging financial times.
Starting in August 2024, the Bank of Japan implemented a strategy to reduce government bond purchases by 400 billion yen per quarter on July 31, 2024.
The impending meeting on June 16 will include an interim assessment period for the quantitative tightening plan, which may indicate a potential opportunity to pivot.
Bloomberg reported that unnamed sources familiar with the matter claim that BoJ officials are contemplating reducing the bank’s bond buying from 400 billion yen per quarter to 200 billion yen per quarter to begin in April 2027.
Japanese Bond Market Crisis Precipitated $112,000 Peak Of Bitcoin
On May 22, Bitcoin attained an all-time high of $112,000, two days after the 30-year yield on Japanese bonds reached a new all-time high of 3.185% on May 20, 2025.
André Dragosch, Bitwise’s director of European research, stated that the concerns regarding Japan’s sovereign bond market prompted institutions to reevaluate Bitcoin’s potential as a hedge against sovereign default risks.
“Yields continue to increase, while perceived default risk continues to increase.”
“This is a rough benchmark of why Bitcoin could be heading toward $200,000,” Dragosch told Cointelegraph, adding that Bitcoin is “free from counterparty risk.”
Government bonds are generally regarded as safe-haven assets.
However, a significant yield increase frequently indicates investor apprehensions regarding repayment risk and fiscal sustainability.
