**A year ago today**, on **August 5, 2024**, Bitcoin surged to **about \$49,000**, driven by a mass unwind of yen-funded carry trades. Now, **a year later**, BTC is up roughly **130%**, hitting new heights above **\$114,000** ([CoinDesk][1]).
### 📉 What happened then: the yen carry‑trade unwind
* Investors had borrowed Japanese yen at ultra-low (even negative) rates and invested in high‑yield assets—ranging from tech stocks and U.S. Treasuries to cryptocurrencies like Bitcoin ([OVEX Blog][2]).
* When the Bank of Japan began hiking rates in mid‑2024 (first to –0.1 % in March, then to 0.25 % by July), the yen strengthened sharply, making those yen‑denominated loans more expensive to repay ([Cointelegraph][3]).
* That prompted a wave of unwinding: investors sold risk assets to raise yen and repay loans, tanking Bitcoin and global markets in early August 2024 ([Cointelegraph][3]).
### 📈 Bitcoin’s rebound: from panic to rally
* As overleveraged yen‑carry positions were flushed out, Bitcoin bottomed near \$50K and then gradually recovered.
* Over the following 12 months, long-term holders strengthened their positions, accumulating during dips.
* Bitcoin has climbed approximately **130%** since that low point, now trading above **\$114K** and reflecting renewed confidence in risk assets ([CoinDesk][1]).
### 📌 Broader market context
* Global equities and bond yields have also risen post‑unwind, supported by improving sentiment and macro inflows.
* The yen carry‑trade unwind caused ripple effects across markets—emerging markets, U.S. equities, crypto—all felt the volatility from rapid repatriation of capital to Japan ([economicsforbeginners.com][4]).
* Analysts at JPMorgan warned in mid‑2024 that the unwind was only about **50–60% complete**, raising the risk of further corrections in risk assets if yen strength continued ([Reddit][5]).
### ⚠️ Why Bitcoin was hit—and why it's rallying now
* Bitcoin is often treated as a **risk-on asset**, highly sensitive to liquidity shifts. During the unwind, leveraged Bitcoin positions were rapidly liquidated to meet margin calls and yen repayment obligations ([OVEX Blog][2]).
* As the worst of the volatility passed, Bitcoin shifted from forced selling to renewed demand. Long-term holders stepped in, reducing supply and fueling the rebound.
* Meanwhile, traditional markets stabilized, yields steadied, and global risk appetite returned, supporting Bitcoin’s strong performance.
---
### 🧮 Summary table
| Event | Approx. BTC Price
| Aug 5, 2024 (yen unwind peak) | \~\$49,000 |
| After unwind sell-off | \~\$50,000 |
| 12‑month accumulation & rebound | Up \~130% from low → \~\$114K
