[Arthur Hayes: If the Federal Reserve expands its balance sheet to intervene in yen and Japanese treasury bond bonds, it will benefit risk assets such as Bitcoin] Arthur Hayes, co-founder of BitMEX, published an in-depth analysis on the "abnormal sound" in the global market caused by the recent depreciation of the yen and the decline in the price of Japanese treasury bond bonds in the latest article. In his view, this indicates that the Federal Reserve and the Ministry of Finance may soon join hands to directly intervene in the yen and Japanese treasury bond market through "printing money", so as to inject new liquidity into the global legal monetary system. Hayes specifically deduced the possible intervention path: the New York Federal Reserve created a dollar reserve, instructed primary dealers such as JPMorgan Chase to sell dollars and buy yen in the foreign exchange market to support the exchange rate, and may invest the yen earned in Japanese treasury bond bonds to lower its yield. This operation will lead to the expansion of the "foreign currency denominated assets" item on the Federal Reserve's balance sheet. In essence, the Federal Reserve has undertaken the interest rate risk of the yen exchange rate and Japanese treasury bond bonds by printing money. He analyzed the motivation and consequences of this move: aimed at stabilizing the yen and lowering the yield of Japanese treasury bond bonds, to prevent Japanese investors from selling US bonds on a large scale, to prevent the yield of US bonds from rising out of control, and to improve the export competitiveness of the United States. This process will increase global US dollar liquidity and may simultaneously push up the euro and renminbi exchange rates. Hayes pointed out that this' non QE style 'balance sheet expansion will ultimately provide upward momentum for risk assets, including Bitcoin. In terms of trading strategy, he said that the rapid strengthening of the yen against the dollar is usually a sign of reducing risk assets. Bitcoin fell because of the strengthening of the yen. He would not increase risk exposure until he confirmed that the Federal Reserve intervened in the yen and Japanese treasury bond market by expanding its balance sheet. He has closed out leveraged Bitcoin related targets such as Strategy and Metaplanet, and stated that if his judgment is correct, he will re-enter the market. During the waiting period, its fund Maelstrom continued to increase its holdings in Zcash, while its holdings in other high-quality DeFi tokens remained unchanged. He stated that if the Federal Reserve indeed expands its balance sheet to intervene in the foreign exchange and bond markets, it will increase its holdings of DeFi assets such as ENA, ETHFI, PENDLE, and LDO.