The unwinding of arbitrage trades during the yen appreciation phase is causing ripples in the Bitcoin market. As the yen rises in response to U.S. interest rate trends and concerns about coordinated intervention by monetary authorities increase, the structure of global arbitrage trading is changing.
According to NS3's analysis, in this scenario, leverage-based borrowing in yen and investment in high-yield assets face headwinds. As investors rush to unwind their positions, Bitcoin is experiencing significant selling pressure.
Short-term volatility is unavoidable, but in the medium to long term,
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