Could Japan trigger another yen carry trade shock for Bitcoin?

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Japan’s monetary-policy normalization and potential yen appreciation could unwind yen-funded carry trades, prompting investors to sell risk assets, including Bitcoin. The resulting liquidity shock could amplify Bitcoin volatility, as seen during prior carry-trade disruptions. However, the scale and timing remain uncertain because they depend on the Bank of Japan’s pace of tightening, yen movements, and global risk appetite.

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