$BTC COLLATERAL DAMAGE: The Yen Carry Trade Is About To Blow 🚨
Friday is Triple Witching Day, guaranteeing massive technical volatility and volume spikes as options and futures expire. This alone makes smooth price action unlikely.
But the real focus is the Bank of Japan rate decision on Thursday. The market is terrified of one thing: the forced liquidation of the Yen Carry Trade.
For years, near-zero JPY rates made it the cheapest funding currency globally. Funds borrowed JPY, converted to USD, and bought high-risk assets—including $BTC and tech stocks.
If the BOJ hikes, the JPY strengthens. This raises the cost of borrowing, turning leveraged positions toxic. When these trades unwind, they don't sell JPY; they dump the risk assets ($BTC, $ETH) to cover the debt.
We have technical volatility colliding with a major macro policy shift. Uncertainty is extremely high. Control your position sizing and manage risk.
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