The yen is strengthening again, Bitcoin traders need to be cautious

On August 19, the yen's outperformance at the beginning of the month triggered carry liquidation and shook risk assets including cryptocurrencies. Since late Thursday, the yen has appreciated 2.4% to 145 against the dollar, ending its rebound from the low of 141.68 on August 5, indicating that investors' appetite for "anti-risk" currencies has warmed up again.

The yen has appreciated more than 1% against the Australian dollar, a barometer of risk appetite. The yen has been even more lively against the euro and the pound.

The reduction in risk exposure in traditional markets has also put pressure on Bitcoin and the broader cryptocurrency market. In the eight days to August 5, BTC fell from about $70,000 to $50,000, and then recovered to $60,000 as USD/JPY rebounded.

The yen's renewed strength is worth paying attention to for cryptocurrency traders.

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