The Yen carry trade is back.
It could even be bigger than the August 2024 crash.
The Bank of Japan (BOJ) said today it will sell $520 billion of its ETF holdings.
This immediately pushed down the Nikkei 225 and other Japanese stock indexes.
But that’s only part of the story.
For years, investors have borrowed cheap yen to buy things like stocks, crypto, and other assets.
Now, BOJ is thinking about raising interest rates in October because of inflation.
If they raise rates, investors will sell their global assets and convert money back to yen to pay their loans.
This could cause a lot of selling pressure quickly, just like in August 2024.
One article says the yen carry trade is almost $14 trillion 3.5 times bigger than the crypto market.
Watch this closely.
#BNBBreaks1000 #BinanceHODLerBARD #FedRateCut25bps
It could even be bigger than the August 2024 crash.
The Bank of Japan (BOJ) said today it will sell $520 billion of its ETF holdings.
This immediately pushed down the Nikkei 225 and other Japanese stock indexes.
But that’s only part of the story.
For years, investors have borrowed cheap yen to buy things like stocks, crypto, and other assets.
Now, BOJ is thinking about raising interest rates in October because of inflation.
If they raise rates, investors will sell their global assets and convert money back to yen to pay their loans.
This could cause a lot of selling pressure quickly, just like in August 2024.
One article says the yen carry trade is almost $14 trillion 3.5 times bigger than the crypto market.
Watch this closely.
#BNBBreaks1000 #BinanceHODLerBARD #FedRateCut25bps