$BTC ALERT: FED Intervention Looms — Potential Impact on Crypto 🚨

A rare macro event is quietly brewing. Signals suggest the U.S. Federal Reserve is preparing to sell dollars and buy Japanese yen, a move not seen this century. The New York Fed has already conducted rate checks, a classic precursor to direct currency intervention.

Japan faces immense pressure. The yen has been significantly weakened for years, bond yields are at multi-decade highs, and the Bank of Japan maintains a hawkish stance. Solo interventions by Japan proved insufficient in 2022 and 2024. History indicates that only coordinated U.S.–Japan action is truly effective.

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**Historical Precedents:**
* 1985 Plaza Accord: Led to the dollar weakening by ~50%, causing commodities and non-U.S. assets to surge.
* 1998 Asian Financial Crisis: The yen stabilized only after the U.S. joined intervention efforts.

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**Potential Chain Reaction:**
* Dollars are created and sold, leading to dollar weakening.
* Global liquidity rises, prompting risk assets to reprice higher.

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However, there's a nuance for crypto. A stronger yen could trigger yen carry trade unwinds, potentially forcing short-term selling. This might lead to temporary price drops for BTC.

Long term, dollar weakness can act as a significant catalyst. Bitcoin exhibits a strong inverse relationship with the dollar and a record-high positive correlation with the yen. Yet, BTC has not fully repriced for potential currency debasement.

If intervention occurs, this could be one of the most important macro setups shaping 2026. Are markets truly prepared for what lies ahead? 👀 This period might just be the calm before a historic market shift.

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#Macro #Bitcoin #GlobalLiquidity