Bank of Japan signals further rate hikes
- On October 16, Kazuo Ueda made it clear that underlying inflation is approaching 2%, financial conditions remain accommodative, and the rate-hike path is unchanged.
- Pressure to unwind yen carry trades is building again. During the deleveraging wave in August, BTC fell more than 15% in a single day as the US-Japan rate gap narrowed. Liquidity tends to drain first from high-beta altcoins.
In the short term, if the yen quickly breaks above a key level, BTC is likely to retest the previous high-volume trading zone to gauge buying depth. ETH and SOL could see even steeper catch-up declines, so leveraged longs should be cut first. Those of you still holding long positions: will you reduce exposure to manage risk this time, or tough it out and wait for a rebound?
$BTC $ETH $SOL
- On October 16, Kazuo Ueda made it clear that underlying inflation is approaching 2%, financial conditions remain accommodative, and the rate-hike path is unchanged.
- Pressure to unwind yen carry trades is building again. During the deleveraging wave in August, BTC fell more than 15% in a single day as the US-Japan rate gap narrowed. Liquidity tends to drain first from high-beta altcoins.
In the short term, if the yen quickly breaks above a key level, BTC is likely to retest the previous high-volume trading zone to gauge buying depth. ETH and SOL could see even steeper catch-up declines, so leveraged longs should be cut first. Those of you still holding long positions: will you reduce exposure to manage risk this time, or tough it out and wait for a rebound?
$BTC $ETH $SOL