🔴 What happens to the dollar and the yen?
The old relationship between the dollar and the yen no longer works as it did before.
Previously: whenever the U.S. interest rate rose relative to Japan’s, the dollar strengthened against the yen.
🔻 Now it’s the opposite... despite the advantage of U.S. interest rates decreasing, the yen kept weakening instead of recovering.
✅ The reason: investors exited carry trade positions as volatility rose, and the yen’s movement became influenced by other factors as well—such as Japan’s financial conditions—not just the interest-rate differential.
Why does it matter for crypto traders?
Because changes in global currency movements affect liquidity and risk appetite, which may be reflected in the performance of assets like BTC and the rest of the crypto market.
The old relationship between the dollar and the yen no longer works as it did before.
Previously: whenever the U.S. interest rate rose relative to Japan’s, the dollar strengthened against the yen.
🔻 Now it’s the opposite... despite the advantage of U.S. interest rates decreasing, the yen kept weakening instead of recovering.
✅ The reason: investors exited carry trade positions as volatility rose, and the yen’s movement became influenced by other factors as well—such as Japan’s financial conditions—not just the interest-rate differential.
Why does it matter for crypto traders?
Because changes in global currency movements affect liquidity and risk appetite, which may be reflected in the performance of assets like BTC and the rest of the crypto market.