The finance ministers of the US and Japan issued a joint statement. On the surface, they talked about 'strengthening cooperation' and 'paying attention to exchange rates,' which are clichéd phrases, but! Analysts who understand the situation saw through it at a glance—this is clearly the US putting pressure on Japan! The underlying message is: 'Hey Japan, your crazy money printing and the devaluation of the yen should be toned down, don't go overboard!'
Sister Feng's Viewpoint:
The yen is one of the 'major sources' in the cryptocurrency market! In recent years, the yen has been cheap, and many Japanese players and even international hot money have borrowed yen to buy assets like Bitcoin and Ethereum. Now that the US is warning Japan not to let the yen become too weak, Japan may have to rein it in a bit and won't dare to flood the market as crazily anymore. As a result? The yen may not be as easy to borrow or as cheap anymore! The inflow of money into the cryptocurrency market may decrease.
Is liquidity tightening? With less money, there is less 'live water' in the market. It's like taking away part of the water from a pond; the fish have less space to move, making price fluctuations easier to amplify, and when they drop, it could be more severe!
History has lessons! Sister Feng remembers clearly, around this time last year, the Bank of Japan slightly intervened in the exchange rate, and Bitcoin dropped several points that same day! The market is super sensitive to this kind of news!
So Sister Feng judges: This time the US-Japan statement, although they haven't taken direct action yet, is equivalent to giving the market a 'preemptive shot' in advance, laying down a mine! It indicates that future yen liquidity may tighten, which is definitely not good news for the crypto market relying on global hot money, especially yen funds! Short-term market sentiment may be affected, increasing volatility, and everyone needs to fasten their seatbelts!
This is just the beginning! Will there be more aggressive actions later? If the yen really becomes 'more expensive', which cryptocurrencies in the crypto circle will be the first to not withstand it?
In the next issue, Sister Feng will analyze the Federal Reserve's little calculations for you, then share a key indicator to teach you how to sense risks in advance! More importantly, crises often hide the secret to doubling! Want to know how to layout? Follow Sister Feng and don't miss the next hardcore analysis!
