Analysis: Dovish signals from the Bank of Japan eliminate a key risk for Bitcoin’s rebound

PANews April 14, according to CoinDesk, ahead of the April 28 policy meeting, Bank of Japan Governor Ueda Kazuo released dovish signals, stating that with the impact of the Iran war on the Japanese economy uncertain, he would take a more cautious stance, which helped Bitcoin break through $74,000. On August 5, 2024, the Bank of Japan’s unexpected rate hike triggered the unwinding of the yen carry trade, causing Bitcoin to drop from $64,000 to $49,000 within 48 hours. A dovish Bank of Japan that keeps the yen weak maintains low funding costs for carry-trade capital, supporting leveraged positions in risk assets, including leveraged positions in crypto perpetual contracts. More than 90% of Japan’s oil imports pass through the Strait of Hormuz; if progress is made in US-Iran negotiations and oil prices continue to fall, Japan’s inflation pressure will ease further, and the Bank of Japan will have even less reason to raise interest rates, thereby extending the window during which carry trades support risk assets.

$BTC ‌#Gate广场四月发帖挑战