{"id":75238,"date":"2026-07-11T00:04:58","date_gmt":"2026-07-11T00:04:58","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/why-bitfinex-is-warning-investors-about-the-yen-carry-trade\/"},"modified":"2026-07-11T00:04:58","modified_gmt":"2026-07-11T00:04:58","slug":"why-bitfinex-is-warning-investors-about-the-yen-carry-trade","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/why-bitfinex-is-warning-investors-about-the-yen-carry-trade\/","title":{"rendered":"Why Bitfinex Is Warning Investors About the Yen Carry Trade"},"content":{"rendered":"<p><b>(Originally posted on : Bitcoin News )<\/b><br \/>\n<\/p>\n<div>\n<div class=\"@container mb-[25px] rounded-sm overflow-clip py-0.5 pr-0.5 pl-2.5 bg-success-100\">\n<div class=\"flex flex-col gap-m overflow-clip rounded-[6px] !bg-success-10 p-3 @[420px]:p-m\">\n<h2 class=\"m-0 flex items-center gap-s text-[19px] !text-[#1c1c1c] md:text-[20px]\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"16\" height=\"10\" viewbox=\"0 0 16 10\" fill=\"none\" class=\"shrink-0 text-success-100\" aria-hidden=\"true\"><path d=\"M1 1.5h14\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><path d=\"M1 8.5h10\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><\/svg><span>Key Takeaways<\/span><\/h2>\n<ul class=\"m-0 flex list-none flex-col gap-m pl-0\">\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">The yen dropped to historic lows, raising policy tightening fears that threaten global crypto liquidity.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Bitfinex flagged the yen carry trade as a macro risk, warning a sharp reversal will hit BTC and ETH.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Japan spent $73B on FX interventions, showing limited impact against massive global trading volumes.<\/span><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<h2>Yen Carry Trade Reversal Awakens Fears in Bitcoin Analysts<\/h2>\n<p>One of the most relevant global <span>liquidity<\/span> drivers, the Japanese carry trade, is under analyst scrutiny again due to the recent devaluation of the yen, which might prompt a reversal of the conditions that gave it its origin.<\/p>\n<p>As <a href=\"https:\/\/news.bitcoin.com\/the-yen-carry-trade-explained-how-japan-spooks-crypto-and-stock-markets\/\">explained<\/a> in <span>Bitcoin<\/span> News before, the yen carry trade has its origin in the historically low cost of borrowing money in Japan. Investors <a href=\"http:\/\/www.bitcoin.com\/get-started\/what-is-leverage-in-crypto-trading\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">leverage<\/a> this <a href=\"http:\/\/www.bitcoin.com\/get-started\/what-is-liquidity\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">liquidity<\/a>, extracting it from the country and funneling it into more lucrative markets, investing in risk assets such as tech stocks and <a href=\"https:\/\/www.binance.com\/en\/price\/bitcoin\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">bitcoin<\/a>.<\/p>\n<p>The recent devaluation of the Japanese yen, which has touched historic lows, has experts examining possible actions by the Bank of Japan, which might choose to tighten its fiscal policy, affecting the carry trade and the assets that benefit from it.<\/p>\n<p>Bitfinex analysts have <a href=\"https:\/\/x.com\/bitfinex\/status\/2075226037651181878?s=20\" target=\"_blank\" rel=\"noopener noreferrer\">flagged<\/a> the yen carry trade <span class=\"css-1jxf684 r-bcqeeo r-1ttztb7 r-qvutc0 r-poiln3\">as the <strong>\u201cclearest macro risk to bitcoin <\/strong><\/span><strong>right now.\u201d<\/strong><\/p>\n<p><strong>\u201cJP10Y hit new highs while the yen sits near 162, and a sharp yen reversal from here would tighten liquidity and pressure $BTC and $ETH. A real risk to a market still trying to find a floor,\u201d<\/strong> the stressed, underscoring the risks of a potential policy change for risk assets.<\/p>\n<p>Nonetheless, some claim these fears are unfounded, as the market believes Japan cannot take aggressive action due to its massive debt. <strong>\u201cAs a result, the wide US-Japan interest rate differential \u2013 and the structural weakness of the yen \u2013 are likely to persist,\u201d<\/strong> said Bosco Wu, an investment strategist at Bank of East Asia.<\/p>\n<p>The central bank predicted that the yen would weaken even further, reaching 165 per dollar in 12 months. It has already directed interventions to preserve the yen\u2019s value, injecting about $73 billion into foreign exchange interventions from April to May.<\/p>\n<p>These have been limited in scope, having little effect on a forex market that moves close to 17% of all global trade <a href=\"http:\/\/www.bitcoin.com\/get-started\/what-is-trading-volume\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">volume<\/a> \u2013 over $1.6 trillion daily.<\/p>\n<p>Even so, shifting expectations might affect the market, even if a reversal does not happen in the end.<\/p>\n<p>Cliff Zhao, chief economist at CCB International, and global strategist Vera Jiang <a href=\"https:\/\/www.scmp.com\/economy\/article\/3359844\/japanese-yen-sinks-40-year-low-focus-turns-carry-trade?module=perpetual_scroll_0&amp;pgtype=article\" target=\"_blank\" rel=\"noopener noreferrer\">told<\/a> SCMP that <strong>\u201cif expectations for both US and Japanese monetary policy were to shift simultaneously, a stronger yen, risk-asset sell-offs and leveraged position unwinding could quickly reinforce one another, amplifying volatility across global markets through highly liquid assets.\u201d<\/strong><\/p>\n<\/p><\/div>\n<p><a href=\"https:\/\/news.bitcoin.com\/the-clearest-macro-risk-to-bitcoin-why-bitfinex-is-warning-investors-about-the-yen-carry-trade\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : Bitcoin News ) Key Takeaways The yen dropped to historic lows, raising policy tightening fears that threaten global crypto liquidity. Bitfinex flagged the yen carry trade as a macro risk, warning a sharp reversal will hit BTC and ETH. Japan spent $73B on FX interventions, showing limited impact against massive global [&hellip;]<\/p>\n","protected":false},"author":15,"featured_media":75239,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[32],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/75238"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=75238"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/75238\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/75239"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=75238"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=75238"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=75238"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}