QCP Group reported that the U.S. Treasury, in coordination with the New York Fed and Japan’s Ministry of Finance, purchased yen—the first joint U.S.-Japan foreign exchange intervention since 1998. The yield on the U.S. 30-year Treasury note rose briefly to approximately 5.27% before retreating to 5.24%. QCP noted that a rapid appreciation of the yen could force investors holding yen-funded positions to deleverage and repurchase yen, potentially spilling over to risk assets such as BTC and ETH, echoing the market turbulence triggered by the unwinding of carry trades in August 2024. QCP advised that macro monitoring should include the USD/JPY exchange rate, Japanese funding costs, and U.S. long-term Treasury yields.
U.S.-Japan Joint FX Intervention May Impact Crypto Liquidity
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Summary
U.S.-Japan joint FX intervention may shift liquidity zones in crypto markets. The U.S. Treasury and Japan’s Ministry of Finance purchased yen, the first such move since 1998. Yen strength could trigger deleveraging, impacting BTC and ETH. QCP advises monitoring USD/JPY, Japanese funding costs, and U.S. long-end yields. Traders should evaluate risk-to-reward ratios when positioning in volatile environments.
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