Arthur Hayes says a falling EUR/JPY could unlock a fresh wave of crypto liquidity. He argues the currency move signals more dollar printing at the Federal Reserve.

The Maelstrom chief investment officer forecasts EUR/JPY falling from about 185 to below 140 by June 2027. He links the move to US Treasury Secretary Scott Bessent’s currency strategy.

Why EUR/JPY Is Hayes’ Crypto Liquidity Gauge

In July, the New York Fed sold euros to help fund Japan’s yen rescue. It used the Treasury’s Exchange Stabilization Fund (ESF) rather than dollars.

Hayes argues that reallocation previews a bigger pattern. Allies get dollar liquidity without an official expansion of the Fed’s balance sheet.