🚨BREAKING:
BANK OF JAPAN IS EXPECTED TO HIKE RATES TO 1% IN APRIL, ACCORDING TO BANK OF AMERICA
THIS WILL DUMP MARKET HARD
HERE IS WHY:
Japan didn't have 1.00% since 1990s and last time it was in that zone world was already getting hit
Most ppl think of Japan as a slow economy, irrelevant, not coordinated with global financial system
But in fact, Japan is one of the core liquidity engines of it with:
- World's largest creditor nation
- Holds $1.2T US treasuries
- Japanese institutions hold European debt, global equities, etc
But the most important it yen carry trade, which means borrowing money in Japan at near 0% interest, converting yen to dollars and buying assets
This is the largest leverage engine in history
So cheap yen = global risk assets go up
When BOJ raises rates, borrowing becomes expensive and capital flows back to Japan
As a result, we have:
- USD/JPY falls
- Global liquidity tightens
- Falling global risk appetite
Crypto is super sensitive to liuqidity means all of this makes crypto fall hard, not only short-term but mid-term too
I called previous BTC fall and all I see for now is bearish charts and further downfall for BTC
Make sure to follow me and turn notifs on cause I will post a warning of a dump before it actually happen
