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A potential resumption of Bitcoin's sell-off toward the $60,000 level is back on traders' radar after Japan moved to hike interest rates, according to analysis published by TradingView.
The pairing matters because Japanese monetary policy has repeatedly acted as a pressure valve for risk assets, including $BTC, when the yen carry trade begins to unwind.
The Japan Connection Rate hikes from the Bank of Japan tighten the math on a trade that has quietly funded speculative positions across global markets for years: borrow cheap yen, deploy into higher-yielding or higher-risk assets.
When Tokyo raises the cost of that borrowing, the unwind tends to be fast and indiscriminate — and Bitcoin, sitting near the liquid end of the risk spectrum, gets hit early.
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