The Yen is about to unleash a 643M liquidity bomb
The quiet crisis brewing in Japan is hitting global markets hard. The Bank of Japan’s potential rate hike, now 90% priced in, is signaling the death knell for the massive Yen carry trade.
We just saw the first wave—a brutal $643 million liquidation event as institutional capital rushed back home. This is not just about bonds; this is a fundamental liquidity drain from global risk assets.
When the most persistent short trade in global finance unwinds, the ripple effect reaches everywhere. Keep a close watch on $BTC futures. Historically, tightening global liquidity squeezes leverage, and the speed of this unwind suggests significant volatility ahead for the entire crypto complex. This shift is a fundamental change in the macro landscape, not just a temporary dip.
This is not financial advice.
🚨
