SAIM PROTOCOL

FED IS SIGNALING YEN INTERVENTION AGAIN JUST LIKE 1985. LAST TIME, THIS CRASHED THE DOLLAR BY NEARLY -50%.

In 1985, the U.S. dollar had become too strong. U.S. factories were losing business, exports were collapsing, and trade deficits were exploding. Congress was close to putting heavy tariffs on Japan and Europe.

So the U.S., Japan, Germany, France, and the U.K. met in New York at the Plaza Hotel and made a deal. They agreed to deliberately weaken the dollar. By directly selling dollars and buying other currencies together. That was the Plaza Accord and it worked.

Over the next 3 years:

- The dollar index fell almost 50%.
- USD/JPY moved from 260 to 120.
- The yen doubled in value.

This was one of the biggest currency resets in modern history. Because when governments coordinate in FX, markets don’t fight them. They follow. That decision changed everything.
A weaker dollar pushed:

- Gold higher
- Commodities higher
- Non-U.S. markets higher
- Asset prices higher in dollar terms

Now look at today.

The U.S. still runs large trade deficits. Currency imbalances are at the highest. Japan is again at the center of stress. And the yen is again extremely weak. That is why Plaza Accord 2.0 is even being discussed.

Last week, the NY Fed did rate checks on USD/JPY, which is the exact step taken before FX intervention. It signals willingness to sell dollars and buy yen, just like 1985.

No intervention happened yet. But markets moved anyway. Because they remember what Plaza means.

If that starts again, every asset priced in dollars will skyrocket.
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BIG WARNING: THE BIGGEST THREAT TO CRYPTO IS BACK.
The probability of a US government shutdown by January 31 has exploded to nearly 80%.
Just a day ago, it was only around 10%-15%.
And this is a serious liquidity risk for crypto.
Democrats have made it clear they will block the spending bill unless key DHS funding provisions are removed, and Republicans are not backing down, which means a shutdown is now a real possibility.
And here is the dangerous part:
The debt ceiling has already been raised to $41.1 trillion.
That means politicians can afford to fight longer without instantly breaking government operations, which actually increases the chance of a shutdown.

But if that's the case, why would crypto suffer?

When a shutdown starts, the US Treasury usually rebuilds its Treasury General Account (TGA). To do that, it pulls money out of financial markets.

Last time this happened, the TGA increased by about $220 billion. That was a $220B liquidity drain from markets, and crypto cannot handle that.

Last shutdown cycle:
• Markets pumped for a short time
• Liquidity dried up
• Then crypto collapsed
• $BTC TC and $ETH TH dropped 20%-25%
• Altcoins dropped much more

And one of the biggest factors behind this was the liquidity crisis.

This time, the setup is even worse.

• Liquidity is already thin.
• Market confidence is already weak.
• Institutions are mostly in stocks and gold.
• Volatility is already high

Crypto is already swinging violently on small flows.

A shutdown-driven liquidity drain could be devastating and result in an even more brutal dump.
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DXY About to Crash? Here’s Why 🚨
For the first time this century the Fed may intervene to stop the Japanese yen from dropping.
To do this, they create new dollars and buy yen which strengthens the yen and weakens the USD.
Why does this matter?
• Future US debt gets inflated away 💸
• Exports become cheaper 📦
• Deficit pressure eases 📉
For those holding assets history shows this can trigger huge rallies.
Back in July 2024 Japan yen intervention created volatility for a few weeks — then $BTC and altcoins rallied to new highs.
This time it’s the Fed itself.
Markets could stay shaky for a bit but a weaker dollar often means Bitcoin and altcoins go parabolic 🚀
Stay alert manage risk and watch the macro flow. 💎📈