If the US and Japan take joint action that leads to a weaker dollar, global liquidity will increase, which typically boosts the prices of risk assets such as gold, commodities, stock markets, and cryptocurrencies.
Short-term risk: A sudden strengthening of the yen could force arbitrage traders who have borrowed yen to close their positions, potentially triggering a short-term crash in assets like Bitcoin (similar to the situation in August 2024).
Long-term benefit: A trend of weakening dollars will prompt funds to seek "value gaps." Currently, the price of Bitcoin is still far below the peak in 2025, which could make it a core asset to attract funds, thereby gaining significant long-term upside potential.
In simple terms, if the US and Japan intervene in the exchange rate together, it may cause short-term market fluctuations but will bring huge growth opportunities for cryptocurrencies like Bitcoin in the long run.
Short-term risk: A sudden strengthening of the yen could force arbitrage traders who have borrowed yen to close their positions, potentially triggering a short-term crash in assets like Bitcoin (similar to the situation in August 2024).
Long-term benefit: A trend of weakening dollars will prompt funds to seek "value gaps." Currently, the price of Bitcoin is still far below the peak in 2025, which could make it a core asset to attract funds, thereby gaining significant long-term upside potential.
In simple terms, if the US and Japan intervene in the exchange rate together, it may cause short-term market fluctuations but will bring huge growth opportunities for cryptocurrencies like Bitcoin in the long run.