In the cryptocurrency space, Arthur Hayes stated today that the Bank of Japan's June meeting could trigger a rise in Bitcoin price if it resumes its quantitative easing program. Shares of American cryptocurrencies and Bitcoin rose as more companies added Bitcoin to their government bonds, and the President of Paraguay denied claims that Bitcoin would become a legal currency in the country.

The Bank of Japan's shift to quantitative easing could trigger a rise in Bitcoin price - Arthur Hayes

The upcoming monetary policy meeting of the Bank of Japan in June could be the next major catalyst for global risk assets like stocks and cryptocurrencies.

The Bank of Japan is set to decide on its next interest rate decision at its upcoming monetary policy meeting on June 16 and 17.

The central bank could be the next major catalyst for the price of Bitcoin ($109,515) and other risk assets if it moves towards quantitative easing, according to Arthur Hayes, co-founder of BitMEX and CEO of investment firm Maelstrom.

Hayes wrote in a post dated June 10: "If the Bank of Japan postpones its quantitative easing program and reintroduces the targeted quantitative easing program at its June meeting, high-risk asset prices will rise."

The term quantitative easing refers to central banks buying bonds and injecting money into the economy to lower interest rates and encourage spending during tough financial conditions.

Source: Arthur Hayes

On July 31, 2024, the Bank of Japan presented a plan to cut government bond purchases by 400 billion yen quarterly, starting in August 2024. The tightening quantitative easing plan is set to undergo a temporary evaluation period at the upcoming meeting on June 16, indicating a potential opportunity for a course change.

Bitcoin and American cryptocurrency stocks rose as more companies plan to purchase Bitcoin.

American stocks linked to cryptocurrencies rose alongside Bitcoin to close Monday's trading higher, as more publicly listed companies added this currency to their bonds.

The four largest cryptocurrency mining companies in the country and some major crypto firms closed with slight gains on June 10, extending their gains after hours of trading.

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Bitcoin broke the $110,000 barrier early in the Asian trading session on Monday. Source: Cointelegraph Markets Pro

This comes at a time when the price of Bitcoin (BTC) at $109,499 rose by 4% over the last day to reach $110,150, thus regaining its peak of $112,000 reached on May 22, as market fears have mostly subsided amid trade talks between the United States and China in the United Kingdom.

The cryptocurrency and stock trading platform, Robinhood Markets (HOOD), was the rare exception in this broad upward trend, falling about 2% to $73.40 after the S&P Dow Jones indices remained stable in the S&P 500 index on Friday.

Meanwhile, Bitcoin mining equipment leasing company Bitmain Immersion Technologies (BMNR) announced on Monday that it bought 100 Bitcoin for the first time to hold as a reserve, while energy management company KULR Technology Group announced it bought another $13 million worth of Bitcoin, bringing its total holdings to 920 Bitcoin.

Paraguay warns of "irregular activity" after a post claims Bitcoin is a legal currency.

It appeared that the office of Paraguay's President, Santiago Peña, was denying a post on the social media platform X, announcing that the country would start recognizing Bitcoin as a legal currency.

In a post published on Monday on X, the official account of Paraguay's President's office asked followers to "ignore any content published recently" without official confirmation from his office.

This post was published minutes after Peña's personal account on platform X (in English) announced that Paraguay made Bitcoin (BTC) worth $109,499 a legal currency, and created a reserve of Bitcoin worth $5 million, and provided a wallet address for investors "to secure their investments."

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Source: Santiago Peña

At the time of publication, Peña's personal post had been deleted, while the government post remained active on the platform. The president's office stated that it is working with the social media platform "to clarify the situation" and to urge the public to rely only on information issued through official channels.

The X post came at a time when reports indicated that some countries in Central and South America are considering following El Salvador's approach to adopting Bitcoin as a reserve asset.