As a researcher with a background in finance and economics, I find the potential impact of a declining Japanese yen on U.S. treasuries and the subsequent implications for Bitcoin intriguing. The executive from Swan Bitcoin, Dante Cook, raises valid concerns about Japan’s large holdings of U.S. treasuries and the potential sell-off that may ensue due to the need to prop up its currency.
If the Japanese yen continues to weaken, it could lead to unfavorable consequences for US treasury bonds, creating an opportunity for investors to shift their funds towards Bitcoin as a safe-haven asset. (Swan Bitcoin executive’s perspective)
As a researcher examining currency exchange rates, I’ve discovered that one Japanese Yen (JPY) translates to approximately 0.0064 US Dollars (USD) when I checked the latest figures from Google Finance. Over the past thirty days, JPY has weakened by around 2.39% compared to USD.
“Japan is in a precarious position along with the United States, given that Japan is the largest owner of U.S. treasuries and just 4% of its foreign exchange reserves are held in gold. The remainder is mostly invested in U.S. treasuries,” Dante Cook, head of business at Swan Bitcoin, stated during a May 8 episode of Bitcoin Daily.
Cook posits that without intervention from the US government through swap lines or hidden liquidity sources, Japan may be compelled to unload its U.S. treasury bonds to strengthen its own currency.
The author contends that the market downturn may cause apprehension in conventional investments, resulting in a substantial influx of funds moving towards Bitcoin. This influx could bolster Bitcoin’s value as investors turn to it as a more secure alternative asset.
Institutional investors have been pouring large amounts of money into Bitcoin following the SEC’s approval of 11 Bitcoin spot ETFs in early this year.
Over the course of its existence, Bitcoin ETFs occupying the eleven spots on the market have amassed a total of $11.78 billion in investments, based on Farside’s figures. At present, the price of Bitcoin hovers around $61,399, representing a 6.29% increase over the past seven days as indicated by CoinMarketCap.
As a market analyst, I can assert that the existing volatility and uncertainty in conventional financial markets may prompt investors to seek out less orthodox investment opportunities, such as riskier cryptocurrency altcoins, according to Cook’s perspective.
“Because the money is broken, more and more people are turning to gambling,” he claimed.
As a crypto investor, I’ve noticed that Cook has brought up VanEck, a company that has put forth efforts to launch a Bitcoin spot ETF but hasn’t had the best track record so far. However, they recently introduced something new – the MarketVector MEMECOIN index.
As a crypto investor, I found it surprising when institutions began offering cryptocurrency services to retail clients. Yet, I can’t say I was completely taken aback, given the ongoing instability in conventional financial markets.
As a researcher examining the MEMECOIN index, I’d describe it as follows: The index consists of six different meme coins. Dogecoin (DOGE) holds a significant share with 30% of the total weight. Shiba Inu (SHIB) comes in second at 28%. PEPE (PEPE) is present with a 14% allocation, followed by Dogewifhats (WIF) at 13%, Floki (FLOKI) with 7%, and Bonk (BONK) making up 6% of the index.
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2024-05-09 06:55