• Home
  • Bitcoin Market Recovers Amid Yen Carry Trade, Future Remains Uncertain

Bitcoin Market Recovers Amid Yen Carry Trade, Future Remains Uncertain

The Essentials at a Glance

In the last 24 hours, the Bitcoin market has slightly recovered from its recent slump. Analysts have examined various theories to explain the sudden selling pressure. One plausible explanation is the impact of a carry trade with the Japanese Yen, amplified by the recent interest rate increase by the Bank of Japan. This situation has affected not only Bitcoin, but also other asset classes. Despite the recovery, the future of Bitcoin and other cryptocurrencies remains uncertain, urging investors to exercise caution.

What happened?

The Bitcoin market experienced a dramatic slump that surprised many investors and analysts. The sell-off that started last week continued until August 5th, before a slight recovery began. This slump was not limited to cryptocurrencies; other asset classes were also affected. Experts have been looking for explanations and have put forward several theories.

The Role of the Japanese Yen

One of the theories discussed involves the carry trade with the Japanese Yen. Investors borrow money in currencies with low interest rates to invest in assets with higher returns. The Bank of Japan (BOJ) recently raised its interest rates from negative to positive, which strengthened the value of the Yen. Investors who had borrowed money as part of a carry trade had to sell their assets to settle their debts. It is suspected that some of these assets were invested in Bitcoin, which contributed to the selling pressure.

Impact on the Market

The BOJ’s interest rate hike and the associated appreciation of the Yen led to significant selling pressure on Bitcoin, which fell by up to 31% against the Yen. This movement shows how global financial events can have direct and indirect impacts on the crypto market. Despite the recent recovery, the situation remains tense, and the markets could continue to be volatile.

alert-circle
You can also find us on Telegram:
Click here to follow our Telegram channel.

Our Assessment

The recent events underscore the complexity and interconnectedness of the global financial markets with the crypto sector. Investors should be aware of these interactions and act cautiously. The short-term recovery of Bitcoin could present a buying opportunity, but the risk of further turbulence remains. It is important to closely follow developments and make decisions based on a thorough analysis. The future of the crypto market remains uncertain, and only time will tell how the situation will further develop.

Sources: Michael Nderitu and Saman Waris at AMBCrypto, TradingView

Casinos: 50
Profile Bitcoin
Symbol BTC
Coin type Alt Coin
Transaction Speed Slow
Pros
  • First cryptocurrency, therefore very widespread
  • Largest selection of casinos among the coins
  • Many BTC based bonus offers
Cons
  • Fairly low transaction speed
Price $101,158.00
24h % -0.59 %
7d % 1.01 %
30d % 13.05 %
60d % 50.96 %
1y % 134.66 %
Market Cap $2,001,828,414,848.00
Max. Supply 21,000,000.00
Official Links
Socials Reddit | X | Message Board
Best 3 Bitcoin casinos

Latest News

Isabella Brown

Created by

Online Gambling, Greece and my dog Gringo are my three favorite things in my life. Before working for Kryptocasinos.com I was leading the content team of an iGaming Online magazine where I was focused on researching casinos, their licenses and the connection between the members of the industry.
Reviewed by
Nerd of Numbers

Last update: 26. September 2024

kryptocasinos.com Logo Advertising transparency

We are independent, transparent and funded by revenue we generate when you sign up at a casino through us.

Our goal is to help you make better decisions when choosing a casino by offering different information, providing filters and comparison tables, and publishing objective content. Thus, we give you the opportunity to research for free, compare casinos and make your decision based on that.

We cannot guarantee that a casino that is very good for us will fit your type of player and your circumstances.

Why trust us?

We work according to transparent editorial guidelines and disclose our testing methods as well as funding. This article may contain links to our partners, but this does not influence our objective view in any way.

🍪
We use cookies. By using this site, you accept them.