2025-12-18 03:23:30

The Bank of Japan looks set to pull the trigger on a second rate hike this year come Friday. Here's the thing though—analysts are flagging a potential headache. When the BoJ tightens policy, it could crack the yen carry trade wide open. That trade has been a silent engine pumping liquidity into riskier bets, and Bitcoin's been riding that wave along with other high-beta assets. Tighten the screws on rates, and you squeeze that carry trade. What happens next? Money starts flowing out of those high-risk positions. The liquidity that's been fueling the rally in crypto markets could start drying up. Not saying it's a done deal, but it's definitely something traders should have on their radar as the announcement approaches.

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CryptoFortuneTeller

· 2025-12-20 02:04

The Bank of Japan is about to raise interest rates again, will the carry trade be disrupted? Let's see how BTC performs then. --- Arbitrage trading exploded under the expectation of rate hikes; with this liquidity withdrawal, the crypto market should be cautious. --- Does BoJ really dare to act? If the yen carry breaks, the entire market will be reshuffled. --- So ultimately, it still depends on the dollar's movement; Japan is just the trigger. --- The carry trade can't really hold up anymore; it's only a matter of time. --- Here we go again. Every time the central bank adopts a hawkish stance, people start shouting about a crash. Crypto enthusiasts should be used to it, haha. --- Liquidity exhaustion is truly terrifying. Not to say it outright, but it does sound pretty risky. --- See you on Friday. Let's see if the central bank will really cause a hard landing.

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DiamondHands

· 2025-12-18 03:48

The Bank of Japan is about to raise interest rates again, and the carry trade collapse will make the crypto circle tremble... --- Carry trade has lasted this long, it will eventually crash sooner or later --- No way, it just started to rise and now the Japanese are going to ruin it? I'm really speechless --- If liquidity dries up completely, it will directly cause a sell-off. We’ll see what happens on Friday --- If the central bank takes action, the entire market will tremble. It’s too difficult --- With such strong rate hike expectations, we need to defend our positions in the short term --- This carry trade is like a time bomb, it will have to be dealt with sooner or later --- Once again, arbitrage trading is causing trouble. The crypto circle hates passive price drops the most --- Once the Bank of Japan announces something on Friday, it could be a signal to sell off --- If liquidity dries up, small-cap coins will be the first to suffer

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GasFeeSobber

· 2025-12-18 03:42

The Bank of Japan is about to raise interest rates again, will the yen carry trade cool down? The liquidity in the crypto circle might be drained... --- If the carry trade collapses, who will provide us with liquidity? --- Basically, money will run away, and high-risk assets need to be caught. --- Let's wait and see how the market crashes on Friday; it's all in the script anyway. --- Will this really have an impact, or is it just another wolf coming? I'm a bit numb to it. --- The yen carry trade has been played for so long; it's only a matter of time before something goes wrong. --- Liquidity exhaustion will first hit us. --- When the central bank tightens liquidity, does that mean crypto has to kneel? That's overthinking... --- Bitcoiners should have prepared for this day long ago. Why be surprised? --- In a high-interest-rate environment, who still plays high-risk assets? The logic is very clear.

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ChainDetective

· 2025-12-18 03:31

The Bank of Japan is up to something again. Once the carry trade collapses, our recent rally might be in trouble. Wait, if liquidity really dries up, those who are currently riding the wave will be crying. When BoJ's scalpel strikes, high-beta assets will all suffer. Can BTC stand apart... It's just the Bank of Japan raising interest rates, acting like it's the end of the world—this routine happens every year. Pay close attention to Friday's announcement; it feels like the real test this time. Carry trade collapse? That's funny. There are too many places for funds to go, it's not that easy. It's an alarmist statement. In reality, the market has self-regulating capabilities, so don't worry unnecessarily.

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