Ever wondered why crypto markets suddenly tank when Japan's carry trade unwinds?

The correlation is real and it's happening again. When Japanese investors rush to close their yen-funded positions, the ripple effect hits everything from equities to digital assets. This isn't just theory—we're watching it play out in real-time as volatility spikes across the board.

The carry trade mechanism is simple: borrow cheap yen, invest in higher-yielding assets elsewhere. But when the Bank of Japan shifts policy or market stress rises, that whole chain reaction reverses fast. And guess what gets hit hardest? High-beta assets like crypto.

Worth keeping an eye on yen strength and Japanese bond yields right now. They might tell you more about the next Bitcoin move than any chart pattern.