⏯️Explanation of yesterday's drop

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The center of drama is... Japan and the story of Yen "out of time cheap":

The yield on Japanese government bonds has surged to its highest level in about 17 years:

10-year bonds around 1.86–1.87%

2-year bonds around 1.0–1.02%

BOJ Governor Kazuo Ueda signaled quite clearly:

"Consideration may be given to raising interest rates at the meeting on 18–19/12 if the data aligns with forecasts."

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This statement makes the market understand one thing:

The era of ultra-cheap Yen is truly nearing its end.

✅️For many years, numerous global funds and traders have employed the yen carry trade strategy:

✅️Borrowing Yen at extremely low interest rates → Converting to USD → Investing in BTC, ETH, and other risky assets, with leverage → Prices rise, profiting from both the spread and the price increase.

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Borrowing Yen is no longer as cheap as before.

Positions using Yen as funding are forced to shrink or close.

Wanting to repay Yen → must sell some BTC, ETH… → selling pressure coincides with thin liquidity → prices drop quickly, deeply, and are hard to support.

😍Simply put:

The cheap money valve from Japan is being tightened → carry trade unwind → crypto, especially BTC, takes the first hit.

😁Today is the day the market resets leverage, not a day to prove "the ability to endure pain".

In the long term, I still lean towards the scenario:

➡️➡️➡️Bitcoin is in a major cycle,

✅️Shocks like "tightening Yen - unwind carry trade - liquidating leverage" are things... almost unavoidable.

✅️When the market calms down, positions are liquidated, money always finds its way to continue – and risky assets like BTC often see a return of capital quite early if the macro picture does not completely collapse. #ETH #BTC