Bitcoin, Risk Assets on Notice as US-Japan Coordination Boosts Dollar Liquidity

The US dollar's potential boost in global liquidity due to Washington's coordination with the Bank of Japan (BoJ) has put Bitcoin and risk assets on notice for a possible liquidity flux. The yen carry trade unwind could squeeze liquidity if it deepens further, but investors are currently betting on increased investor risk appetite.

Bitcoin (BTC) is trading above $63,000, while Ethereum (ETH) remains under pressure below the supply range at $1,900 and above the short-term $1,800 support. Ripple's (XRP) upside is constrained under the pivotal $1.10 level with support at $1.00 remaining intact.

Aave (AAVE), a decentralized finance (DeFi) protocol, has extended its near-term recovery despite weak retail demand and declining futures Open Interest by 6% over the last 24 hours. The funding rate for AAVE has sunk below zero, indicating increased selling pressure.