BTCC / BTCC Square / Global Cryptocurrency /

BOJ Rate Decision Looms Over Crypto Markets as Yen Carry Trade Unwinds

BOJ Rate Decision Looms Over Crypto Markets as Yen Carry Trade Unwinds

Author:

Global Cryptocurrency

Published:

2025-12-17 14:29:01

4

1

BTCCSquare news:

Global markets brace for volatility as the Bank of Japan prepares its first rate hike in 11 years. The anticipated 25bps increase to 0.75% threatens to disrupt the yen carry trade—a cornerstone of risk asset liquidity that fueled crypto rallies during low-rate regimes.

Traders report indiscriminate selling across both traditional and digital asset markets. Bitcoin (BTC) and Ethereum (ETH) show heightened correlation to macro indicators, while altcoins like SOL and DOGE face amplified pressure from potential Leveraged position unwinding.

The MOVE follows the U.S. Federal Reserve's recent policy shift, creating a dual liquidity squeeze. Market makers on Binance and Bybit observe abnormal derivatives activity, with funding rates turning negative for major pairs.

By:

U.S. Senators Introduce SAFE Act to Combat $9.3B Crypto Fraud Surge

|Square

Get the BTCC app to start your crypto journey

Download on the App Store GEI IT ON Google Play

Get started today Scan to join our 100M+ users

Risk warning: Digital asset trading is an emerging industry with bright prospects, but it also comes with huge risks as it is a new market. The risk is especially high in leveraged trading since leverage magnifies profits and amplifies risks at the same time. Please make sure you have a thorough understanding of the industry, the leveraged trading models, and the rules of trading before opening a position. Additionally, we strongly recommend that you identify your risk tolerance and only accept the risks you are willing to take. All trading involves risks, so you must be cautious when entering the market.

The world’s longest-running cryptocurrency exchange since 2011 © 2011 - 2025 BTCC.com. All rights reserved

All articles reposted on this platform are sourced from public networks and are intended solely for the purpose of disseminating industry information. They do not represent any official stance of BTCC. All intellectual property rights belong to their original authors. If you believe any content infringes upon your rights or is suspected of copyright violation, please contact us at [email protected]. We will address the matter promptly and in accordance with applicable laws.BTCC makes no explicit or implied warranties regarding the accuracy, timeliness, or completeness of the republished information and assumes no direct or indirect liability for any consequences arising from reliance on such content. All materials are provided for industry research reference only and shall not be construed as investment, legal, or business advice. BTCC bears no legal responsibility for any actions taken based on the content provided herein.