Yen Intervention Fears Rattle Markets as Crypto Traders Watch for Spillover
Japan's currency warning shot across global markets landed with precision. Prime Minister Takaichi Sanae's threat of intervention against speculative yen moves triggered the sharpest single-day reversal in USD/JPY since April, catching Leveraged positions off guard. The New York Fed's unusual rate checks amplified volatility, compressing what's become the most crowded short trade in a decade.
Crypto markets showed muted reaction but remain alert. bitcoin held steady near $63K while altcoins like ETH (-1.2%) and SOL (-3.4%) underperformed amid the macro uncertainty. Derivatives data reveals Bybit and Binance traders pared back yen-denominated crypto margin positions ahead of the weekend.
Market veterans note parallels to September 2022 when Japan's last FX intervention coincided with a 12% BTC slump. This time, stablecoin flows suggest crypto may decouple - Tether's USDT premium hit 3-month highs in Asian trading as yen volatility spiked.
