The yen surged, is the Federal Reserve acting behind the scenes? The yen exchange rate has experienced the most exaggerated single-day increase in over six months. The Federal Reserve may have intervened to help Japan print money to put out the fire.

If the Federal Reserve wants to stabilize the yen without letting Japan sell U.S. Treasuries (because selling U.S. Treasuries would crash the U.S. market), it has only one method:

Step one: The Federal Reserve creates dollars (bank reserves) out of thin air through digital printing.

Step two: Use these new dollars to buy yen in the market.

Result: There are more dollars, the value decreases; yen is bought, the value increases. The yen exchange rate stabilizes, but global dollar liquidity also increases as a result.

In my opinion, whether the Federal Reserve is trying to save Japan, save banks, or save U.S. Treasuries, as long as it starts printing money, the money will flow to the most sensitive and scarce asset—Bitcoin.