Family! Stop staring at the ups and downs of the BTC curve! Recently, a major move from Japan is the key variable determining the thickness of your wallet—yes, it's that statement from the Japanese Finance Minister, 'If the exchange rate goes wild, we will act decisively!' This is not just empty talk; I dare say this is the 'call to arms' for the trend of yen appreciation, and players in the crypto space and U.S. stocks are likely to face a 'liquidity winter' ahead!
First, let me give the newcomers some solid info: Why will yen appreciation affect the global market? The core is this thing called 'yen carry trade.' Simply put, Japan's low interest rates previously led global institutions to love borrowing yen and converting it to dollars to speculate on U.S. stocks and buy crypto assets, profiting from interest rate differentials and investment returns. But now it's different; the Japanese officials have clearly stated that the current depreciation of the yen is 'speculative activity,' not determined by economic fundamentals, meaning they are going to act to raise its value.
Let me insert my core viewpoint here: the destructive power of the yen's rapid appreciation is more intense than the Federal Reserve's interest rate hikes! After all, rate hikes only narrow the interest rate differential, while the appreciation of the yen directly makes the yen borrowed by institutions more expensive—when it comes time to repay, they will need to use more dollars to exchange for yen, and this foreign exchange loss is not a small number. At that time, it will inevitably trigger a 'panic liquidation wave'. Regardless of whether institutions made money on US stocks or crypto assets, they will first sell to bring back dollars to repay debts. As global liquidity contracts, can the coins and US stocks we hold not drop?
Before, there were quite a few fans chatting with me, saying that they felt the crypto market was about to rebound. I reminded them at the time not to overlook external factors. Now that this signal from Japan has come out, the previous rebound expectations can basically be halved. My operational advice is very simple: closely monitor the USD/JPY exchange rate in the near term. As long as the trend of the yen appreciating is established, whether you hold BTC, ETH, or US tech stocks, you need to quickly adjust your positions. Don't wait to be caught in the 'carry trade retreat' and get crushed.
To be honest, the crypto and US stock markets have never been isolated; any shifts in global funds can trigger a chain reaction. I will continue to monitor the yen exchange rate and institutional movements, and I'll share any new operational signals here as soon as possible. If you think my analysis is on point, quickly hit follow, don't wait until the market drops to remember to find a group! Have you adjusted your positions yet? Let's chat in the comments～ Follow me @链上标哥 so you don't get lost!
