When the yen raises interest rates, Bitcoin skyrockets. As soon as the US stock market opens, BTC and ETH dump.

Why?
For the past 10 years, Japan's interest rates have been basically 0 or even negative, making Japan the place with the cheapest money in the world. Institutions (mainly Japanese auntie trusts and hedge funds) have done something like this:

1. Borrow a lot of yen (interest is almost free)
2. Exchange for USD
3. Fully invested in high-risk assets: the seven sisters of US stocks, emerging market stocks, Bitcoin, ETH... just buy wherever it goes crazy.
4. Every year, easily gain 5%-10% interest spread + asset appreciation, feeling great.

This is called "Yen Carry Trade," with a scale of hundreds of billions to over a trillion dollars.

Now that the Bank of Japan has raised interest rates, even if it's just by 0.25%, the game has completely changed:

- The interest on borrowing yen suddenly became expensive, and the interest rate difference has disappeared or even inverted.
- The yen exchange rate has started to surge (from 161 to over 140 during that wave in 2024)
- I borrowed 100 yen before and now I have to pay back 110-120, I'm losing blood.
- Everyone was startled at the same time: hurry up and sell Bitcoin → sell US stocks → exchange for US dollars → rush to buy Japanese yen to pay back!

Hundreds of billions of dollars are simultaneously being dumped out. How can Bitcoin, which originally has no fundamentals and relies purely on capital, withstand this?

Directly running rampant, blood flows like a river.