$BTC The Bank of Japan implements an official rate hike, and the yen carry trade tightens again!
The Bank of Japan raises rates by 25 basis points to 1.25%.
The policy rate rises directly to the highest level in 31 years!
The decision is approved 7 to 2.
Another sign of contraction in global liquidity!
On September 18, the Bank of Japan officially adjusts the policy rate from 1% to 1.25%, and continues to move out of the ultra-easy monetary environment of recent decades. It’s worth noting that this hike was already highly anticipated by the market, so the 25 basis points themselves may not be the biggest impact; what matters most now is whether the Bank of Japan will release signals of further rate hikes and even accelerate the pace of normalization.
For BTC and global risk assets, the key thing to watch is the yen and the carry trade. If Japan’s rates continue to rise, the room to fund positions with low-interest yen to invest in higher-yield foreign assets will shrink; and if the yen later appreciates rapidly, some of the leveraged capital could cut back on positions. The next volatility window will be the Bank of Japan governor Kazuo Ueda’s press conference.
The 25 basis points have already materialized; now the market begins pricing in the next step.
If the yen strengthens suddenly, be careful with leveraged positions in both Crypto and the U.S. stock market!
$BTC
The Bank of Japan raises rates by 25 basis points to 1.25%.
The policy rate rises directly to the highest level in 31 years!
The decision is approved 7 to 2.
Another sign of contraction in global liquidity!
On September 18, the Bank of Japan officially adjusts the policy rate from 1% to 1.25%, and continues to move out of the ultra-easy monetary environment of recent decades. It’s worth noting that this hike was already highly anticipated by the market, so the 25 basis points themselves may not be the biggest impact; what matters most now is whether the Bank of Japan will release signals of further rate hikes and even accelerate the pace of normalization.
For BTC and global risk assets, the key thing to watch is the yen and the carry trade. If Japan’s rates continue to rise, the room to fund positions with low-interest yen to invest in higher-yield foreign assets will shrink; and if the yen later appreciates rapidly, some of the leveraged capital could cut back on positions. The next volatility window will be the Bank of Japan governor Kazuo Ueda’s press conference.
The 25 basis points have already materialized; now the market begins pricing in the next step.
If the yen strengthens suddenly, be careful with leveraged positions in both Crypto and the U.S. stock market!
$BTC
