ChainCatcher news, BitMEX co-founder Arthur Hayes has published a new article titled "Sugar High," discussing issues such as why the yen's interest rate hike is still insufficient.Hayes states that as we enter the final phase of the third quarter, the liquidity conditions of fiat currencies are very favorable for cryptocurrency holders. Central banks around the world, led by the Federal Reserve, are now lowering the cost of funds. The Federal Reserve is cutting interest rates while inflation remains above target, and the U.S. economy continues to grow. The Bank of England and the European Central Bank may continue to lower interest rates at their upcoming meetings. Treasury Secretary Yellen has committed to issuing $271 billion in Treasury bonds by the end of the year and conducting a $30 billion buyback. This will inject $301 billion in dollar liquidity into the financial markets. The U.S. Treasury still has about $740 billion left in the Treasury General Account (TGA), which can and will be used to stimulate the market and help Harris win.The article also states: "If the Federal Reserve cuts interest rates while inflation is above target and the economy is growing strongly, imagine what they would do if a recession actually hit the U.S. economy. They would ramp up money printing and significantly increase the money supply. This would lead to inflation, which could be detrimental to certain types of businesses. But for assets with limited supply like Bitcoin, it would be a rapid journey to the moon."

ChainCatcher news, BitMEX co-founder Arthur Hayes analyzed in a personal blog post that Japan's fifth-largest bank, Norinchukin Bank, recently announced it will sell $63 billion worth of U.S. and European bonds. This suggests that other Japanese banks may follow suit, with total sales reaching up to $450 billion in U.S. Treasuries.Hayes pointed out that the reason for the large-scale selling of U.S. Treasuries by Japanese banks is the sharp widening of the U.S.-Japan interest rate differential, which has led to a significant increase in the foreign exchange hedging costs for holding U.S. Treasuries, resulting in losses from holding these bonds. In an election year, U.S. Treasury Secretary Yellen is likely to ask the Bank of Japan to absorb these sold bonds through the Federal Reserve's FIMA repo tool, in order to prevent a sharp rise in U.S. Treasury yields and avoid turmoil in the financial markets.Hayes believes that if the Federal Reserve engages in large-scale money printing to repurchase the U.S. Treasuries sold by Japan, it will bring a new wave of dollar liquidity to the cryptocurrency market, fueling a new cryptocurrency bull market. He stated that to maintain the current dollar-based financial system, the supply of dollars must increase, which will undoubtedly drive up the prices of crypto assets, including Bitcoin.