Japanese CPI data has just been released and the number is 1.9% (below the projection of 2.0% and the previous 2.2%). At first glance, it seems just a macro data point, but for those trading crypto, this is pure liquidity.
Why should you pay attention? 👇
1️⃣ End of the fear of "Carry Trade": The great specter of the market in 2025 has been the rise in interest rates in Japan. With inflation cooling (1.9%), the Bank of Japan (BoJ) loses the main argument to raise rates now. This reduces the risk of a forced global sell-off (liquidation) of risk assets to pay loans in yen.
2️⃣ Yen Fraco = Cheap Money in the Market: As long as the yen remains at low interest rates, it continues to be the main source of "cheap money" flowing into high-yield assets, including Bitcoin and Altcoins.
3️⃣ Macro Scenario: With inflation below the 2% target, Japan signals that the economy still needs stimulus. For the crypto market, this is a sign of "breathing room" in the short term, keeping the global liquidity tap open.
Opera Summary: Less pressure on interest rates in Japan is historically a favorable wind for the crypto ecosystem. While the world watches the FED, don't take your eyes off the BoJ! 📉➡️💹
And you, do you think Japan will keep these interest rates for how long? Comment below if you are keeping an eye on the JPY pair for your strategies! 🗣️