The Federal Reserve's rate hike hasn't affected the market at all!!
Next, Friday's Bank of Japan interest rate decision is coming. If Japan raises rates, there is still some risk!
Because the yen is mainly used for carry trades, its interest rates are relatively low. This means a lot of money would flow out of Japan!
Borrow yen to buy U.S. Treasuries—the annualized spread is 4%. That's a sure-win deal with no downside!
More yen could flow into other financial assets, including Bitcoin.
As the room for Japan's rate-arbitrage trade shrinks, the capital will return to Japan, and some funds may also withdraw from Bitcoin, causing a decline. It’s similar to the drop on August 5th last year when Bitcoin fell by 49,000!
In the long run, no matter how much it drops, it's the best opportunity to buy the dip!
Watch this Friday's market conditions!
Next, Friday's Bank of Japan interest rate decision is coming. If Japan raises rates, there is still some risk!
Because the yen is mainly used for carry trades, its interest rates are relatively low. This means a lot of money would flow out of Japan!
Borrow yen to buy U.S. Treasuries—the annualized spread is 4%. That's a sure-win deal with no downside!
More yen could flow into other financial assets, including Bitcoin.
As the room for Japan's rate-arbitrage trade shrinks, the capital will return to Japan, and some funds may also withdraw from Bitcoin, causing a decline. It’s similar to the drop on August 5th last year when Bitcoin fell by 49,000!
In the long run, no matter how much it drops, it's the best opportunity to buy the dip!
Watch this Friday's market conditions!
