japón

Joint interventions in the yen by #Japón and the US could ultimately benefit #Bitcoin and risk assets. The yen carry trade has been one of the biggest sources of cheap global liquidity. Investors borrow in yen, at very low interest rates, to invest in higher-yielding assets in dollars, including equities and BTC.

By intervening, the US and Japan to strengthen the yen, the USD/JPY exchange rate falls rapidly. Leveraged traders are forced to cover their yen positions by going short. To obtain quick liquidity and repatriate funds, they sell risk assets and cryptocurrencies.

The joint intervention creates turbulence and immediate selling pressure due to the unwinding of leverage, but it sets the stage for an environment with greater global liquidity and a weaker dollar, which historically benefits BTC and the equities market.