U.S.-Japan intervention revives yen carry trade fears for bitcoin
Coordinated action sent the yen sharply higher, but bitcoin’s recent correlation suggests U.S. dollar strength, rather than the carry trade, may be the bigger risk.
Source: CoinDesk
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DW NOTE
The yen went from 164 to 156.5 on coordinated intervention, but bitcoin's –0.90 correlation with USD/JPY means it tracks the dollar index, not yen strength. If bitcoin falls, it won't be because Japanese housewives are unwinding leveraged FX positions — it'll be because the dollar is rising against everything else while Treasury yields sit at 4.68% and inflation runs at 3.5%.