Yen Carry Trade Crash: BoJ Rate Shock Sends Bitcoin Tumbling

Published at 2025-12-05 16:46:37

The Bank of Japan’s unexpected rate move overnight triggered a swift appreciation of the yen and forced a broad unwind of carry trades funded in cheap yen. That deleveraging spilled into risk assets, with Bitcoin experiencing a sharp sell-off as funding costs spiked and leveraged positions were squeezed. Traders reported increased futures liquidations and a sudden tightening in stablecoin flows as margin calls rippled through crypto markets.

This episode underscores how macro shocks can quickly transmit to crypto via funding markets and cross-asset flows. Short-term volatility is likely to remain elevated; watch funding rates, open interest, and USD/JPY moves for signs of stabilization. US Crypto News Morning Briefing flags this as a reminder that traditional macro events can still dictate crypto price action even amid on-chain narratives.

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