JAPAN DECIDES RATES TODAY. AND CRYPTO COULD FEEL IT HARD. đš
Three central banks in four days:
â Fed hiked rates 12-0 on Wednesday
â Bank of England decided yesterday
đ Bank of Japan announces TODAY â midday Tokyo time
For beginners â why does JAPAN matter to YOUR crypto?
Japan has the world's most popular carry
trade.
Here's how it works in simple terms:
â Investors borrow money cheaply in Japan at 0.75% rates
â They invest that borrowed money into risky assets like Bitcoin and US stocks
â If Japan raises rates â that borrowing gets expensive
â Investors are FORCED to sell their risky assets to repay the loans
â Bitcoin drops â not because of anything crypto did â but because of Japan
This happened in August 2024 and Bitcoin dropped 20% in 48 hours.
What to expect today:
đĄ BOJ holds rates at 0.75% â most likely. Small relief for crypto.
đŽ BOJ hikes to 1% â carry trade unwinds. Crypto drops hard.
We already took two punches this week â CLARITY Act blocked and Fed hiked. A BOJ hike today would be the third punch in four days.
Bitcoin sitting at $74,800 right now. Nervous and waiting.
Are you positioned for a third punch or do you think Japan holds? đ
$BTC $ETH $BNB #Bitcoin #BankOfJapan #BOJ #CryptoNews #BinanceSquare
Three central banks in four days:
â Fed hiked rates 12-0 on Wednesday
â Bank of England decided yesterday
đ Bank of Japan announces TODAY â midday Tokyo time
For beginners â why does JAPAN matter to YOUR crypto?
Japan has the world's most popular carry
trade.
Here's how it works in simple terms:
â Investors borrow money cheaply in Japan at 0.75% rates
â They invest that borrowed money into risky assets like Bitcoin and US stocks
â If Japan raises rates â that borrowing gets expensive
â Investors are FORCED to sell their risky assets to repay the loans
â Bitcoin drops â not because of anything crypto did â but because of Japan
This happened in August 2024 and Bitcoin dropped 20% in 48 hours.
What to expect today:
đĄ BOJ holds rates at 0.75% â most likely. Small relief for crypto.
đŽ BOJ hikes to 1% â carry trade unwinds. Crypto drops hard.
We already took two punches this week â CLARITY Act blocked and Fed hiked. A BOJ hike today would be the third punch in four days.
Bitcoin sitting at $74,800 right now. Nervous and waiting.
Are you positioned for a third punch or do you think Japan holds? đ
$BTC $ETH $BNB #Bitcoin #BankOfJapan #BOJ #CryptoNews #BinanceSquare
