Odaily Planet Daily News đ Matrixport released a chart today showing that Bitcoin's recent plunge is mainly attributed to the unwinding of yen carry trades. Many financial market participants borrowed yen to invest in high-yield assets, but now they are reversing these positions, and Bitcoin has been hit.
The Bank of Japan's unexpected interest rate hike, coupled with market expectations of a rate cut by the Federal Reserve, has increased uncertainty in central bank policies and led to deleveraging in the financial system. According to some traders, this is the main reason for the decline in Bitcoin prices.
Despite this, Bitcoin's long-term prospects remain optimistic, and investors should pay attention to market dynamics and maintain rational investment. đ
