Hedge Funds Bet on a Stronger Yen: Will Bitcoin Feel It?
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Hedge funds are positioning for a stronger Japanese yen, largely reflecting expectations that the Bank of Japan will normalize policy while U.S. rate cuts narrow the yield gap. A stronger yen could unwind carry trades, prompting investors to repatriate funds and reduce exposure to risk assets such as Bitcoin. The impact on Bitcoin is likely to depend on the pace of yen appreciation and broader liquidity conditions, with an abrupt carry-trade reversal posing the greatest downside risk.
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