The tag #BTC86KJPShock has quickly become the red thread of the current shock in the cryptocurrency market. According to some sources, the brutal drop of Bitcoin below 86,000 USDT would be a direct consequence of a 'Japanese shock'. In other words, bond yields would have experienced a spectacular rebound in Japan, which triggered a large-scale global 'risk-off' movement.
Why such a brutal crash?
The trigger was the rise in Japanese two-year bond yields above 1%. This sufficiently strong signal prompted many funds to repatriate capital, ending many cheap yen-funded 'carry trades'.
The escalation
This triggered a cascade of sales in this order:
Technical support broken
Stop-loss triggered
Massive liquidations of leveraged positions
Panic in the markets
What this means for investors
This correction is described by some observers as a "necessary cleanup." At first glance, the low point initiated will be short-lived. True to itself, Bitcoin remains correlated with macroeconomic dynamics: monetary policy, capital flows, and overall liquidity.
For investors, the alert is clear: any negligence of the macroeconomy when trading cryptos can be costly. Risk management becomes a survival skill: avoid excessive leverage, diversify positions, and know how to keep liquidity in the face of unforeseen events.
Your cheat sheet
Ultimately, the brutal drop of Bitcoin below 86,000 is neither a crypto scandal nor manipulation. It is simply a macroeconomic shock coupled with excessive leverage at the worst moment.
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