Binance News
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The Bank of Japan's interest rate hike may not trigger risk-averse sentiment in the cryptocurrency market
According to PANews, the last interest rate hike by the Bank of Japan led to an increase in the yen, with Bitcoin prices dropping from about $65,000 to $50,000. This rate hike may not trigger a risk-averse sentiment in the cryptocurrency market.
There are two reasons: speculators holding net long positions in yen are unlikely to react quickly; and Japanese government bond yields have continued to rise this year, with both short-term and long-term yield curves reaching new highs.
This week, the Federal Reserve introduced liquidity measures, lowering interest rates by 25 basis points to the lowest level in three years. Overall, the likelihood of yen carry trades being unwound and year-end risk-averse sentiment seems low.
There are two reasons: speculators holding net long positions in yen are unlikely to react quickly; and Japanese government bond yields have continued to rise this year, with both short-term and long-term yield curves reaching new highs.
This week, the Federal Reserve introduced liquidity measures, lowering interest rates by 25 basis points to the lowest level in three years. Overall, the likelihood of yen carry trades being unwound and year-end risk-averse sentiment seems low.
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