[Block Rhythm] Recently, BTC has experienced a significant pullback, and Arthur Hayes has provided his interpretation - this drop may be related to the actions of the Central Bank of Japan.
Specifically, the Bank of Japan recently signaled a possibility of interest rate hikes in December. If you look at the exchange rate of the USD to JPY, it has been fluctuating in the range of 155 to 160, which actually reflects the Bank of Japan's hawkish stance.
Adjustments to monetary policy in traditional financial markets often affect global liquidity expectations. The rising expectations for interest rate hikes in the yen may lead to the unwinding of arbitrage trades, which in turn affects the performance of risk assets. As a high Beta asset, BTC naturally cannot escape this round of adjustments.
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OptionWhisperer
· 18h ago
The Bank of Japan is making moves again, interest rate hike in December? This pullback in BTC is indeed a bit innocent, haha.
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PaperHandSister
· 18h ago
The Bank of Japan is stirring things up again, and BTC is trapped... The arbitrage trades have been a disaster as soon as they close positions in the past two months, no wonder it's falling so sharply.
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GraphGuru
· 18h ago
The Bank of Japan is stirring things up again, the large investors have done a Rug Pull, and the crypto world is getting hit...
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SleepyArbCat
· 18h ago
Nap time warning... Is it the Bank of Japan causing trouble again? I remembered that the previous arbitrage trades were usually this fierce; as soon as the USD/JPY exchange rate fluctuates, high Beta assets get directly harvested, and BTC can't escape this time either.
Arthur Hayes: The BTC pullback may be related to the hawkish stance of the Bank of Japan.
[Block Rhythm] Recently, BTC has experienced a significant pullback, and Arthur Hayes has provided his interpretation - this drop may be related to the actions of the Central Bank of Japan.
Specifically, the Bank of Japan recently signaled a possibility of interest rate hikes in December. If you look at the exchange rate of the USD to JPY, it has been fluctuating in the range of 155 to 160, which actually reflects the Bank of Japan's hawkish stance.
Adjustments to monetary policy in traditional financial markets often affect global liquidity expectations. The rising expectations for interest rate hikes in the yen may lead to the unwinding of arbitrage trades, which in turn affects the performance of risk assets. As a high Beta asset, BTC naturally cannot escape this round of adjustments.