Yen arbitrage trading drops significantly, Bitcoin may experience a strong rebound after the policy vacuum period

The recent market anxiety is not primarily about the rise in interest rates itself, but about the vague understanding of future policy directions. Negentropic, co-founder of Glassnode, recently pointed out that the Bank of Japan’s push for policy normalization has brought unprecedented certainty to global liquidity expectations. While this clarity may put short-term pressure on leveraged positions, it also helps to digest market uncertainty premiums.

Once thriving yen arbitrage trading strategies are experiencing a noticeable contraction. This cross-border arbitrage mechanism, based on the low-interest environment of the yen, has lost its original advantage amid central bank policy adjustments. Increased trading volatility, however, creates new opportunities for market participants.

It is worth noting that historical performance data of Bitcoin shows that assets tend not to rise during periods of policy pressure accumulation, but rather during the phase when these pressures are gradually eased and expectations become clearer. As the chaotic market environment recedes and clear signals are rebuilt, it appears to be preparing for an investment cycle with significant positive return expectations—currently, BTC price is around $90.77K, with market liquidity and investment enthusiasm quietly gathering.