2. Japanese Economic Shift and the Yen Carry Trade Unwind
The recent decision by the Bank of Japan to raise interest rates by 0.25% has had a big impact on global markets, particularly affecting the popular yen carry trade strategy.
This move, which marks a shift away from Japan's long-standing ultra-low interest rate policy, has led to a sharp appreciation of the yen, rising nearly 10% against the USD in just three weeks.
The yen carry trade, a strategy where investors borrow yen at low interest rates to invest in higher-yielding assets, has been a significant source of liquidity for global markets, including cryptocurrencies.
With the suddenasset classes strengthening of the yen, many traders have been forced to unwind these positions, leading to a cascading effect across various
