I heard the Bank of Japan might be making a move? The market expects that at the meeting on December 19, the interest rate will be raised by 25 basis points, jumping straight to 0.75%—a level not seen since 1995.



What does this mean for the crypto world? Once the yen strengthens, those arbitrage trades fueled by low-interest yen will have to start recalculating. Simply put, a lot of people have been using cheap yen to leverage up and buy BTC, but now that the cost is rising, this money might pull out.

Anyone playing with leverage should stay alert. Liquidity can tighten fast, and you don’t want to get caught off guard by a liquidity squeeze.
BTC-0.02%
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GasFeeCryBabyvip
· 19h ago
Is it the Bank of Japan playing this trick again? Is 0.75% really coming... I just want to know how many leveraged traders will be liquidated this time. When the liquidity crunch hits, whoever runs first wins.
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rug_connoisseurvip
· 19h ago
The yen interest rate hike is definitely making arbitrage traders nervous, but the crypto market isn't propped up by Japan alone... Should have deleveraged earlier; if you’re not playing with fire this time, you’re not a true OG.
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TokenVelocityTraumavip
· 19h ago
With this round of yen rate hikes, arbitrage funds need to exit, and leveraged traders should be cautious.
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TokenTaxonomistvip
· 19h ago
ngl, the carry trade unwinding is gonna be *taxonomically* brutal for liquidity pools. let me pull up my spreadsheet real quick—statistically speaking, 0.75% jpy rates historically correlate with ~$2-3b btc liquidations per basis point move. data suggests otherwise if you think retail can absorb this without cascade failures, honestly
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DeepRabbitHolevip
· 19h ago
With this round of yen rate hikes, arbitrage funds are definitely exiting. If you're holding high-leverage BTC, you need to be careful. Seriously, don't gamble on liquidity.
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