The unwinding of the yen carry trade is exerting pressure on Bitcoin's support and resistance levels as global liquidity dynamics shift. This development follows the Federal Reserve's rate cuts and Japan's monetary tightening, which are disrupting the trade, leading to asset sales and leverage unwinding. Bitcoin, often seen as an indicator of risk appetite, may face potential forced selling in this environment.
As the Federal Reserve concludes its quantitative tightening, there is speculation that value investing in cryptocurrencies could gain momentum as markets adjust. At the time of reporting, Bitcoin was trading at $87,082, reflecting the ongoing market volatility.
Yen Carry Trade Unwind Challenges Bitcoin Amid Fed Policy Changes
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