Bitcoin Faces Pressure Due to Unwinding Yen Carry Trade

Bitcoin Traders Brace for Bank of Japan Rate Hike Amid Crypto Sell-Off

The Bank of Japan's expected rate hike to a 30-year high could unwind the yen carry trade, draining liquidity from risk assets like Bitcoin.

Bitcoin faces pressure due to unwinding yen carry trade

The unwinding of the yen carry trade has emerged as a factor affecting global markets, with potential implications for Bitcoin and cryptocurrency prices, according to analysis from financial commentator Graham Stephan.

Yen Carry Trade Unwind Shakes Global Markets, Impacts Bitcoin

The yen carry trade unwind is a significant development that has been casting a long shadow over global markets, and its implications for investment strategies, particularly in the realm of cryptocurrencies like Bitcoin, are profound. This “plumbing” story, often overlooked until volatility spikes, is now at the forefront of financial discussions, thanks to insights from analysts like Graham… Source

Bitcoin Enters Critical Transition As Japan Rate Risk Meets Liquidity Shift Bitcoin News ETHNews

Bitcoin is entering a sensitive year-end phase where improving global liquidity conditions collide with rising macro risks from Japan. While broader liquidity metrics linked to Bitcoin have begun to turn higher, price action remains under pressure as markets brace for a potential Bank of Japan (BOJ) rate decision in mid-December. Together, the setup reflects a market caught between short-term shock risk and a possible longer-term reset. Japan’s …

Cheap Yen, Tight Liquidity: Why Bank of Japan Moves Can Shake Bitcoin

Japan plays a unique and often overlooked role in global liquidity, and that role has important implications for Bitcoin. For decades, the Bank of Japan (BoJ) maintained ultra-low or even negative interest rates, making the Japanese yen one of the cheapest currencies in the world to borrow. This environment fueled the well-known yen carry trade, where global investors borrow yen and redeploy the capital into higher-yielding assets across global …