Bitcoin prepares for an upward move as the carry trade strategy with yen collapses

According to recent sector analyses, currency arbitrage operations are experiencing a significant structural change. The carry trade, which is a speculative strategy where investors borrow money in low-interest currencies ( such as the yen ) to invest in higher-yield assets, has lost considerable traction in global markets.

Experts from the blockchain ecosystem point out that the market does not inherently reject tightening credit conditions, but rather the uncertainty it generates. With the Bank of Japan normalizing its monetary stance, the international financing environment becomes clearer, although this puts short-term pressure on leveraged instruments.

The collapse of the carry trade opens new opportunities

The dramatic slowdown of these speculative yen operations has released accumulated pressure in the markets. Although leverage faces volatility, this creates a scenario where Bitcoin has historically tended to strengthen once regulatory and monetary policy uncertainties dissipate.

Analysts highlight that in previous cycles, Bitcoin did not strengthen during chaos but afterward, when market signals crystalized. The current normalization of policies precisely marks that inflection point where noise diminishes and clearer patterns emerge.

Volatility as a catalyst for directional movements

The range of fluctuations in these weeks should not be interpreted as weakness but as a reorganization of positions. When carry trade strategies collapse, liquidity is released seeking new destinations. Bitcoin, as a risk asset decoupled from conventional policies, has historically capitalized on these transition moments.

The current outlook suggests an asymmetric risk setup to the upside, where bullish scenarios have greater potential than bearish ones, especially once volatility normalizes and markets absorb the new directives of the Bank of Japan.