Bitcoin Jumps to $88K as Hayes Says a Weaker Yen Will Drive Crypto Adoption

Arthur Hayes, the BitMEX co-founder, stirred up the crypto market with his take on the Bank of Japan’s latest move. Namely, he argued that even though Japan raised interest rates, its overall financial policy remains geared toward inflation, which he sees as a positive long-term driver for Bitcoin.

“Don’t fight the BOJ: -ve real rates is the explicit policy. $JPY to 200, and $BTC to a milly.”

The comment followed the BOJ’s decision to raise its short-term policy rate to 0.75% from 0.50%, marking one of the highest nominal interest rates Japan has seen in decades. Its December 2025 “Monetary Policy Meeting” summary included a few points that traders zeroed in on right away and that Hayes shared.

For starters, prices and wages are rising at a steady rate, and companies are likely to keep raising prices to cover higher wage bills. Also, CPI (consumer price index) inflation is moving closer to the bank’s 2% goal, giving policymakers more confidence that price increases are becoming a lasting trend.

Even after raising the interest rate, the actual cost of borrowing remains far below the inflation rate, so money is still effectively cheap.

The BOJ explicitly stated it will continue adjusting policy gradually, not aggressively tightening financial conditions.

Conventional market logic suggests higher rates should strengthen a currency, but Hayes thinks the opposite for Japan.

Because inflation is higher than the interest rate, Japan’s economy offers negative real returns, which pushes money out of the country instead of attracting it, keeping the yen weak.

Hayes’ prediction that the dollar will surge against the yen (toward 200) shows he believes Japan will let its currency fall to help boost growth and wages.

From a crypto perspective, Hayes frames the BOJ’s stance as quietly bullish for Bitcoin. For instance, with inflation higher than interest rates, cash loses purchasing power, making scarce assets like Bitcoin more attractive.

Also, if traders keep borrowing cheap yen to invest elsewhere, that money could still find its way into crypto.

Hayes’ famous $1 million Bitcoin price target is based on the idea that governments slowly devalue their currencies, thus benefiting assets like gold and Bitcoin in the long run.