Why did the markets experience fluctuations this week?
The fluctuations this week did not come out of nowhere.
The markets are reacting to expectations that the Bank of Japan will abandon its extremely accommodative monetary policy, which poses a temporary obstacle to
We have seen this scenario before.
📅 January 24, 2025 — The Bank of Japan raised the rates from 0.25% to 0.50% — what happened next?
- $BTC Bitcoinwas moved to trading platforms (preparing for risks)
- Funding rates decreased (reduction in leverage)
- The price dropped — but it did not break its long-term structure
And now 👀 the same scenario is repeating:
- Yen strength = unwinding interest rate trades
- Decrease in leverage
- Sharp increase in short-term volatility
This is just preparation and not panic. The last rate hike by the Bank of Japan was largely anticipated, and the price of #BTC☀️ stabilized after a reset of leverage.
That’s why we are monitoring the situation closely, as the overall indicators are not negative here, but just an interpretation of the fluctuations.
