Analysis: Yen Carry Trade has significantly shrunk, Bitcoin may strengthen after the Bank of Japan's policy pressure is released

BlockBeats News, December 14th, Glassnode co-founder Negentropic wrote, "The market is not afraid of tightening (rate hikes), but is afraid of uncertainty. The Bank of Japan's policy normalization has brought a clear expectation to the global funding environment, even though leverage will be under pressure in the short term.

Yen carry trades have significantly contracted, and volatility implies opportunity. Bitcoin often strengthens after policy pressure is released, rather than before. With reduced chaos, signals are strengthened. This seems to be preparing for asymmetric upside risk."