Crypto expert Hayes sounds the alarm for Bitcoin!
According to experts, as the Japan-related carry trade relaxation continues, risks on BTC may increase. Although the largest crypto asset rose to $ 58,000 at the beginning of the week, it did not inspire confidence. The fact that crypto was not mentioned in the Trump-Harris debate and Trump fell behind in the polls affected the BTC price.
A striking comment came from crypto expert Arthur Hayes in the middle of all these processes. Addressing his followers on the X platform, Hayes made the following statement:
“USD/JPY (US dollar/Japanese yen parity) has broken down, approaching 140, and is about to become a gin town again in the markets. Let's see if BTC can hold on?”
Investors enter carry trades by borrowing from currencies with low or near-zero interest rates for higher-yielding assets. The Bank of Japan's first interest rate hike in August exploded carry trades and caused a collapse in global markets. Hayes is concerned that the “collapse” that occurred in August may repeat itself.
Yardeni Research analysis said: “Expectations that the Fed will cut interest rates and the Bank of Japan will raise interest rates are strengthening the Japanese yen and forcing investors to ease their carry trades.”
According to Yardeni, if the Fed cuts interest rates by 50 basis points and moves towards monetary easing, carry trades could continue.
$BTC $ETH $BNB