🚨Market update 🚨
read this report i have prepared as it is very important for every crypto investor.
If the Bank of Japan (BoJ) raises its interest rate this Friday, it could significantly impact the cryptocurrency market, building on the effects of its previous rate hikes in 2024. These hikes, which ended a 17-year period of near-zero rates, strengthened the yen and disrupted the yen carry trade—a strategy where investors borrowed yen at low interest to invest in higher-yield assets like crypto.
As the yen appreciated, the cost of repaying yen-denominated loans rose, prompting investors to liquidate riskier assets, including cryptocurrencies, to cover their debts. This led to substantial sell-offs and increased volatility in global markets, with Bitcoin and Ethereum experiencing sharp declines after earlier rate hikes.
Another rate hike could further strengthen the yen, leading to more unwinding of carry trades and downward pressure on cryptocurrencies. Investors should prepare for potential market instability, as the interconnectedness of financial markets means shifts in traditional assets could spill over into the crypto sector.
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