Arthur Hayes Reduces Bitcoin Proxy Exposure Amid Yen Weakness, Eyes DeFi on Potential Fed Intervention

On January 28, prominent crypto figure Arthur Hayes stated that persistent yen depreciation and declining Japanese government bond (JGB) prices are exerting pressure on global markets, potentially necessitating an expansion of the Federal Reserve's balance sheet by the Fed and U.S. Treasury for direct intervention in yen and JGB markets, as reported by BlockBeats. Hayes indicated a correlation between a stronger yen and weaker Bitcoin prices, confirming he would not increase risk exposure until the Fed injects liquidity to stabilize the yen and JGBs. He disclosed exiting high-leverage Bitcoin proxy positions, including Strategy and Metaplanet, prior to recent yen volatility. His Maelstrom fund continues to accumulate Zcash and maintain other quality DeFi token holdings, with consideration for adding ENA, ETHFI, PENDLE, and LDO upon confirmed intervention.