❓ How Japan's Policy Shift Triggered Crypto's Weekend Crash

🕯 The recent 15% crash in crypto markets can be traced back to the Bank of Japan's decision to raise interest rates, ending a 17-year-old policy. This move caused the yen to surge, making yen-denominated loans more expensive for traders who were heavily leveraged. The resulting sell-off led to over $1 billion in liquidated positions and a $13 billion drop in open interest.

💎 While the crash was severe, it may have cleared out risky positions. With potential rate cuts on the horizon in both Japan and the US, crypto markets could be set for a late-summer rebound. However, this event serves as a reminder of the risks associated with excessive leverage in crypto trading.

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