Appreciation of the Japanese yen ~ Recently, some people attributed the bad market to the appreciation of the Japanese yen. Many people did not understand how the Japanese yen was linked to the cryptocurrency circle.

1. There is a huge amount of US dollars in the global market. People borrowed Japanese yen to exchange for US dollars (it is said that it is several trillion US dollars), and then invested in US stocks. Buffett did this. He borrowed Japanese yen to exchange for US dollars when the Japanese yen was cheap.

2. The Japanese yen appreciated beyond expectations -> the cost of borrowing Japanese yen rose rapidly -> swallowed up part of the profits of borrowing Japanese yen to exchange for US dollars and then speculating in US stocks (for example, you borrowed Japanese yen to exchange for US dollars to speculate in US stocks and made 10 points. Then today the Japanese yen exchange rate rose by 3 points, then your profit was directly wiped out by 3 points)

3. As a result, everyone began to sell US dollar assets to repay Japanese yen -> US stocks fell -> caused the collapse of Japanese yen carry trade