The Yen Carry Trade Is Back in Focus — And Crypto Is in the Crosshairs

[cryptobro]

Japan’s rate hike to 0.75% may look small, but its impact is outsized. For decades, near-zero Japanese rates powered global leverage through the yen carry trade. As yields rise and the US–Japan rate gap narrows, that leverage becomes more expensive—and risk assets feel the pressure first.

Previous BOJ tightening cycles coincided with 20–30% Bitcoin drawdowns. This time, BTC is holding near $88K, suggesting the move may already be priced in. Still, if Japan continues tightening, altcoins—far more liquidity-sensitive—could face renewed stress.

[cryptohog]

altcoins probs gonna feel it first if japan keeps tightening just like always feels sketchy for anyone leveraged