carrytrade
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Japan's inflation fell, even deflation MoM.
$BTC $SOL $SUI is very bullish, because Japan will be dovish again.
#carrytrade #JapanEconomy
$BTC $SOL $SUI is very bullish, because Japan will be dovish again.
#carrytrade #JapanEconomy
Thursday Japan/BOJ will announce interest rates.
70% interest rates remained at 0.25%, 29% interest rates rose 0.10% and 1% interest rates fell 0.05%.
If interest rates rise, then risk assets such as $BTC , $ETH , $SOL will fall significantly. Why? because Japan's carry trade is very large, reaching trillions of dollars.
If interest rates remained at 0.25% nothing would happen.
If interest rates fall, BTC will go towards 100k, ETH 6k, and SOL 400.
#JapanEconomy #carrytrade #BOJIntervention #Marketsentimentstoday
70% interest rates remained at 0.25%, 29% interest rates rose 0.10% and 1% interest rates fell 0.05%.
If interest rates rise, then risk assets such as $BTC , $ETH , $SOL will fall significantly. Why? because Japan's carry trade is very large, reaching trillions of dollars.
If interest rates remained at 0.25% nothing would happen.
If interest rates fall, BTC will go towards 100k, ETH 6k, and SOL 400.
#JapanEconomy #carrytrade #BOJIntervention #Marketsentimentstoday
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WHAT IS CARRY TRADE
A financial bicycle (or Carry Trade) is a strategy that takes advantage of the difference in interest rates between two currencies or financial assets.
The basic idea is to borrow in a currency with a low interest rate and invest that money in a product or asset that offers a higher interest rate, with the goal of earning the difference, known as carry.
How a financial bicycle works
The typical strategy involves taking out a loan in a currency that has low interest rates, such as the Japanese yen (JPY), and then converting that money into a currency with a higher interest rate, such as the US dollar (USD).
The basic idea is to borrow in a currency with a low interest rate and invest that money in a product or asset that offers a higher interest rate, with the goal of earning the difference, known as carry.
How a financial bicycle works
The typical strategy involves taking out a loan in a currency that has low interest rates, such as the Japanese yen (JPY), and then converting that money into a currency with a higher interest rate, such as the US dollar (USD).