TechFlow reports, Matrixport released a chart today indicating that the market tends to attribute Bitcoin's sharp decline to the unwinding of yen carry trades.
Many financial market participants who had borrowed yen to invest in higher-yielding assets are now reversing their positions, with Bitcoin becoming a casualty in this process.
The Bank of Japan's unexpected rate hike, coupled with market expectations of Federal Reserve rate cuts, has increased policy uncertainty among central banks, prompting deleveraging across the financial system. According to some traders, this is precisely the main reason behind Bitcoin's price drop.
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