The $BTC Liquidity Bomb Is Ticking In Tokyo 💣
For decades, the Yen was the world's cheapest currency to borrow, thanks to Japan's near-zero interest rates. This fueled the massive "Yen Carry Trade": institutions borrowed Yen, converted it, and piled into high-yield, risk-on assets—especially $BTC. Crypto thrived on this cheap, abundant capital, perfect for leveraged positions. The problem now is the Bank of Japan (BoJ). Even a small shift in policy expectation—not the size of the hike, but the signal of tightening—can trigger a massive unwinding. When the carry trade reverses, global liquidity contracts instantly. A stronger Yen and rising global yields simultaneously crush risky assets. Because $BTC is heavily reliant on leverage, it is always the first to break technical levels and trigger liquidation chains when the world's cheap money disappears. 📉
#MacroAnalysis #BoJ #Liquidity #BTC
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