Hayes sees French banks as a potential fault line, with BNP Paribas, Credit Agricole, and Societe Generale tied to US repo lending.
Arthur Hayes, the chief investment officer of crypto family office Maelstrom, said in an essay published Thursday that traders should stop paying attention to Fed Chair Kevin Warsh’s hawkish comments and instead watch the euro-yen exchange rate for early signs of fresh dollar liquidity.
He argued that mounting funding stress at French banks will eventually force the Federal Reserve to print money to keep the US repo market working, a dynamic he sees as bullish for Bitcoin and the wider crypto market.
