JPY FALLS AND ITS IMPACT TO
$BTC If the economy is doing well, consumer confidence goes up. People feel optimistic that the economy will improve, and since they expect to earn more money, they start spending.
At least, that’s what the Bank of Japan (BoJ) was counting on when they raised interest rates.
But what actually happened? Consumer confidence dropped.
So… what was BoJ’s reason for hiking rates in the first place?
If consumer confidence had gone up, I would have predicted Bitcoin to rise.
But if consumer confidence is falling? Even more reason for Bitcoin to pump.
Now, where will BoJ get the money to save the economy? Two options:
Sell U.S. Treasury bonds (UST)—but that would piss off the U.S.Inflate the Yen—even after raising interest rates.
Whichever move they choose, the outcome is the same: Yen will fall.
#JPY #UST #macroeconomy source: @hoteliercrypto @financialjuice