According to Odaily, the Japanese yen has appreciated by 2.4% against the US dollar since last Thursday, reaching 145 yen per dollar, indicating a preference for safe-haven currencies. A similar surge in the yen's value in early August triggered the unwinding of carry trades, causing significant volatility in risk assets, including Bitcoin. Bitcoin's price fell from approximately $70,000 to $50,000 over eight days before rebounding to $60,000 as the dollar strengthened against the yen.

Notable traders Simon Ree and Andrei Kazantsev, head of crypto trading at Goldman Sachs, have both highlighted that the yen's strength could lead to a negative feedback loop for global risk assets. ING's analysis suggests that the yen's rebound might alter market behavior, increasing the willingness to buy when the yen weakens, thereby amplifying the risk of the yen strengthening further. In the coming weeks, with the Federal Reserve's mid-September rate decision meeting approaching, the unwinding of carry trades may continue.

Arnim Holzer, global macro strategist at Easterly EAB Risk Solutions, noted that if the Federal Reserve cuts interest rates by 50 basis points, the market might initially rise but then fall again due to economic concerns and the yen's strength, which could reignite the unwinding of carry trades.