PANews reported on August 5 that according to CoinDesk, the Bitcoin-Japanese Yen exchange rate fell by nearly 15% on the Tokyo-based bitFlyer exchange, exceeding the decline in dollar terms. The decline was affected by the sharp appreciation of the yen as Japan raised its interest rate by 0.25%. In the past three weeks, the yen-dollar exchange rate has risen by nearly 10%, triggering the unwinding of carry trades, leading to the selling of risky assets including Bitcoin and market volatility.
The trading volume of bitFlyer exchange surged 241% in 24 hours to over $220 million. Asian markets fell across the board, with Japan's Topix 100 index posting its worst performance since 2011 and the Nikkei 225 index falling 12.4%. Cryptocurrency futures liquidations exceeded $1 billion in the past 24 hours as carry trades were unwound.
Despite the market downturn, some analysts remain optimistic that the market may bottom out in the coming days. Lucy Hu, senior analyst at Metalpha, said that although the Federal Reserve has not officially confirmed the September rate cut, the market has already factored it in, and Bitcoin prices are expected to rebound when the macro environment improves.
