BoJ Holds at 1% as Yen Intervention Fades: Bitcoin’s Carry Trade Risk Grows

Japan’s Ministry of Finance confirmed yen buying, dollar selling intervention on July 30, sending USD/JPY sharply lower before the pair recovered later. However, the rebound highlighted how intervention alone struggles to reverse a long-term trend without monetary policy support.

Meanwhile, the Bank of Japan kept its policy rate at 1.0% after its July meeting while maintaining a tightening bias. For crypto, narrowing US-Japan rate differentials and a softer dollar could pressure the yen carry trade, a major funding source for leveraged risk assets, including Bitcoin.

Discover: The Best Token Presales

Yen Intervention Alone Cannot Reverse the Trend

Japan has intervened several times to support the yen over the past two years, including large-scale operations in 2024 and another confirmed move on July 30. Each intervention briefly strengthened the currency before market forces regained control. That pattern reflects the wide interest rate gap between Japan and the United States, which still favors holding dollars over yen.

… Continue reading the full article at the original source below.