Is Bitcoin now tied to the Japanese Yen? Japan's interest rate hikes are changing the rules of the crypto market.

Question

[Block Rhythm] A senior journalist in the financial circle from Germany, Holger, recently presented a rather interesting viewpoint.

He noticed that after Japan started raising interest rates, the mindset of investors engaging in yen arbitrage trading in the market changed. The previous strategy of borrowing yen to invest in other assets for interest rate differentials now needs to be reconsidered.

What is more critical? The movement of Bitcoin is now almost tied to the Japanese Yen. When you see the Yen move, BTC follows suit; this level of synchronization is a bit absurd.

In simple terms: once Japan's monetary policy is adjusted, the pricing logic of global risk assets is being restructured. The crypto market is no exception; instead, it has become a sensitive indicator in this round of macro narrative.

FarmHopper · Accepted Answer

When Japan raises interest rates, even BTC has to obey, it&#39;s hilarious.

The days of arbitrage are really over, now everything has to look at Japan&#39;s expression.

The macro situation has changed, the independence of the crypto world is still dreaming.

When Japan sneezes, the whole world catches a cold, and BTC is the most sensitive thermometer.

I&#39;ve said it long ago, whether it&#39;s a coin or not, it can&#39;t escape the trend; bound to the yen, where can it run to.

With this wave of Japan causing trouble, we retail investors have to recalculate.

SchrodingersFOMO · Answer

The interest rate hike of the yen really changed the entire game rules.

The arbitrage space is gone, and BTC is jumping up and down along with the yen... it feels like encryption is not as independent as imagined.

Now I understand, macro policy is the big boss.

ProveMyZK · Answer

When the yen moves, BTC shakes along with it. This arbitrage game is truly unplayable now.

With the interest rate hike in Japan, global assets have to realign, and our crypto world can&#39;t escape either.

To be honest, this wave of macro narrative is a bit overwhelming.

ShitcoinArbitrageur · Answer

Japan&#39;s interest rate hike has directly trapped BTC, this is the true global linkage of risk assets.

To be honest, the old method of yen arbitrage really needs to change, now not only BTC is following the fluctuations of the yen.

This guy is observing quite well, but it feels like we have already figured this out in this round of market.

When Japan makes a significant move, global risk assets tremble, especially in the encryption sector, there&#39;s no escaping it.

If it&#39;s bound, then it&#39;s bound, after all, everything is now linked to macro factors, what independence can we talk about?

DegenRecoveryGroup · Answer

The Japanese interest rate hike arbitrage exploded, and BTC synchronized with the yen, which is a bit weird.

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Once again, it&#39;s a macro policy take the opposite position dumping. What else can the crypto world do?

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When the yen moves, global assets shake along with it. This chain reaction really can&#39;t hold on any longer.

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So now holding coins is essentially betting on the Central Bank of Japan? It feels like the rules of the game have changed.

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The days of relying on yen arbitrage are over; those still daring to borrow yen to invest are all warriors.

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Bitcoin has become a puppet of macro policy, and this statement sounds a bit heart-wrenching.

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Tied to the yen? Then we are essentially still playing the fiat game, haha.

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As soon as the interest rate hike appears, BTC follows suit. This synchronization really gives no chance for independence.