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US and Japan coordinate yen intervention, traders brace for rough August
Bitcoin was trading around $63,000 at the start of August as traders weighed FX intervention and concerns tied to US Treasury market liquidity.
Cointelegraph reports that the US and Japan coordinated yen support for the first time since 2011, a move that is being watched by Bitcoin traders as they enter what the outlet describes as a historically rough August.
The intervention came after USD/JPY neared 164, and the US decision was linked in part to concerns about US Treasury market conditions, Cointelegraph said. The outlet points to the Fed’s FIMA repo facility as part of the rationale, noting it can provide dollar liquidity to a select set of foreign central banks without forcing Treasuries sales.
Cointelegraph also cites analysis from QCP Capital, which said the operation was conducted as a Treasury-related action rather than an independent Federal Reserve monetary-policy decision, underscoring that institutions outside the FOMC can still affect currency, liquidity, and broader financial conditions.
Speaking to mainstream media, the outlet reports that industry participants emphasized the goal of reducing the risk of Japan selling large amounts of US Treasuries. Cointelegraph further notes that Treasury Secretary Scott Bessent said the FIMA mechanism could be used again, adding that Treasury would not hesitate to participate in further joint intervention.
Latest closeBitcoin $63,780.28 ▲0.5%|USD/JPY 157.40 ▼1.7%