Risk-off swept markets Tuesday: the yen strengthened to 152.99 — its best level since February — triggering stop-loss orders and raising carry trade unwind risk, while copper hit a record above $6.80 and Brent approached $100. Canada slapped 15%-50% tariffs on US goods, escalating the trade war. Bitcoin slipped below $78,000 but capital is rotating into altcoins rather than leaving — the CoinDesk 20 and memecoin index both gained while the large-cap index fell. Bitcoin ETFs remain $1B short of breaking even for 2026 despite August's $3.52B surge. Friday's CPI is the last variable before the September 16 FOMC.
Copper Hits Record High and Yen Strengthens to 152.99 as Risk Assets Sell Off
Copper rose 2% to a record above $6.80 — former Goldman Sachs commodity chief Jeff Currie: "You cannot build data centers, expand grids, or electrify industry without copper." Brent approached $100, WTI gained 3.5% to near $95. The yen reached 152.99, its strongest since February, as markets price 75% odds of a BOJ hike September 18 — the carry trade unwind risk that crashed Bitcoin 20% in days during August 2024 is the specific mechanism to watch. Bitcoin's 90-day correlation with the 10-year sits at -0.17 versus gold's -0.41, which has kept it steadier than the metal through yield moves — but a carry unwind is mechanical selling, not rate-driven repricing, and correlation data doesn't capture it. Bitcoin dominance fell for a fifth straight day to 59.35%.
Copper Hits Record High and Yen Strengthens to 152.99 as Risk Assets Sell Off
Copper rose 2% to a record above $6.80 — former Goldman Sachs commodity chief Jeff Currie: "You cannot build data centers, expand grids, or electrify industry without copper." Brent approached $100, WTI gained 3.5% to near $95. The yen reached 152.99, its strongest since February, as markets price 75% odds of a BOJ hike September 18 — the carry trade unwind risk that crashed Bitcoin 20% in days during August 2024 is the specific mechanism to watch. Bitcoin's 90-day correlation with the 10-year sits at -0.17 versus gold's -0.41, which has kept it steadier than the metal through yield moves — but a carry unwind is mechanical selling, not rate-driven repricing, and correlation data doesn't capture it. Bitcoin dominance fell for a fifth straight day to 59.35%.