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U.S. joins Japan FX intervention, reviving yen carry trade worries for bitcoin
USD/JPY swung from about 164 to 156.5 after the coordinated intervention, and bitcoin’s 52-week correlation with USD/JPY hit minus 0.90.
CoinDesk reports that the U.S. joined Japan in coordinated foreign exchange intervention last Friday, a move aimed at countering disorderly yen moves that is reviving concerns about the yen carry trade and its impact on crypto.
After the announcement, USD/JPY reversed from nearly 164 to 156.5, according to the report, raising the prospect that a stronger yen could pressure digital assets.
While some investors fear a strengthening yen would weigh on bitcoin, CoinDesk analysis points to a different relationship: bitcoin’s 52-week rolling correlation with USD/JPY reached minus 0.90, suggesting bitcoin has been moving opposite to the yen-dollar direction in recent data.
CoinDesk also links the anxiety to past market behavior, noting that in August 2024, when the Bank of Japan unexpectedly hiked rates, BTC fell from roughly $62,000 to $49,000 in about a week, while the report highlights that bitcoin has stayed relatively flat above $63,000 more recently.
Latest closeBitcoin $63,780.28 ▲0.5%|USD/JPY 157.40 ▼1.7%