The yen Arbitrage trading ( carry trade ) has recently become the focus of the market.

In simple terms, it means borrowing low-interest yen to buy high-yield assets—stocks, cryptocurrencies, high-yield bonds. When the Bank of Japan suddenly raises interest rates or there is market panic, this capital will crazily flow back to yen for safe-haven, triggering a tightening of global liquidity.

Do you remember the flash crash in August 2024? The Japanese yen suddenly appreciated, triggering a trillion-dollar scale of Arbitrage liquidations, causing Bitcoin and the Nasdaq to plummet across the board. This is not just an issue of a particular cryptocurrency or sector, but rather the entire pricing logic of risk assets has been shaken.

Recently, the Japanese yen exchange rate has begun to fluctuate again, the Federal Reserve's policy is shifting, and the Bank of Japan's stance is wobbly... these signals could trigger the next carry trade collapse.

There will be a sharing session at 9 PM tonight to deeply analyze this mechanism. Friends who are interested can come and discuss your views—when do you think the next arbitrage liquidation will occur?