The Real Reason the US is Defending the Yen… If Dollar Liquidity is Released, a Bitcoin 'Big Market' is Coming | Seo Dong-ju, Kim Dong-hwan, Baek Hun-jong SmashFi CEO

Summary

The panel discusses why the U.S. Treasury and Fed intervened to defend the yen and how FIMA repo expansion could turn Japan's U.S. Treasury holdings into new dollar liquidity. Baek Hun-jong argues this policy pivot weakens dollar and Treasury credibility and favors hard assets, especially Bitcoin and gold. He links U.S. growth, AI data center investment, and real yield strength to the coming liquidity shift.

• The U.S. intervened in FX markets by selling euros and directly rate-checking Japanese banks, signaling Japan is now the priority financial counterparty.
• Expanded FIMA repo could let Japan borrow dollars against its $1.17T U.S. Treasury position instead of selling it, potentially releasing large dollar liquidity.
• Baek sees 10-year Treasury yields rising on real growth expectations, not primarily on inflation fear.
• He expects dollar weakness and a 1970s-style shift into hard assets, with gold ETF inflows and gold trading near $4,400/oz.
• Bitcoin is framed as a harder bearer asset that should benefit from dollar liquidity and is already seeing spot ETF inflows.
• Bitcoin spot ETF net inflows and MVRV Z-score are proposed as tools to monitor the turn in Bitcoin interest.