CoinEx News: In his August 11 essay “Yen Quake,” Arthur Hayes argues that Japan’s weak yen and rising government-bond yields could push Tokyo and Washington toward a larger liquidity backstop. Japan has already intervened with the US to buy yen, but selling reserves risks forcing US Treasury sales and lifting American borrowing costs. Hayes says Japan could instead pledge Treasuries to the Federal Reserve’s FIMA repo facility, receive dollars, and sell those dollars for yen without dumping bonds in the open market.

A rapidly stronger yen can unwind yen-funded carry trades, forcing investors to reduce leveraged positions; Bitcoin and Ether would likely absorb the initial shock, while higher-beta altcoins such as SOL and DeFi tokens face greater downside. If FIMA use becomes large and persistent, steadier Treasury yields and more dollar liquidity would favor BTC first, then ETH and liquid altcoins. Gold would also benefit from a weaker dollar, lower real yields and monetary-debasement demand. However, Fed data showed zero foreign-official repo usage as of August 5, so the liquidity signal remains unconfirmed.