Just saw the news from the Bank of Japan, my fists are almost clenched to shreds

When interest rates rise, carry trade funds have to start pulling back

These guys previously borrowed yen to buy shanzhai (knockoff) assets, laughing all the way to the bank

Now that interest rates are going up, they all have to run back

$ETH 1,740 at this level

Neither up nor down, stuck there like a fishbone

I’m watching the market, itching to act

But don’t cry over margin first, the order book will speak

When carry trades are unwound, liquidity will definitely shrink first

Shanzhai assets will be the first to suffer, $ETH can it hold?

I almost opened a long position yesterday

But I forcibly held my hand back

Not because I’m cowardly, but because I’ve seen too many times how reverse carry trade reversals lead to big waterfalls

That’s not a correction, it’s a direct crash through

Just now I saw those contracts like RIVER and PUMP

All 14x leverage longs are exploding

A 7% fluctuation can take people out

In this kind of market, anyone on leverage will be the first to cry

Where’s the key?

This isn’t just a normal rate hike, it’s a liquidation signal for carry trades

Once the yen interest rate really starts to rise

Among the new capital flowing into the crypto market

At least 30% is hot money from yen carry trades

Now it all depends on whether $BTC can hold the key level

If it can’t hold, the entire liquidity level will have to be lowered

How much do you think the yen rate hike can go?

Come chat in the comments section