Fed Rate Decision Looms as Biggest Near-Term Bitcoin Threat

The Federal Reserve's September rate decision is set to be announced on Wednesday, followed by the Bank of Japan two days later. Markets are pricing in a roughly 85% chance of a 25-basis-point Fed hike.

According to XWIN Japan, the real question isn't whether rates move but how hawkish both central banks sound once they do.

A stronger yen could accelerate the unwinding of carry trades, putting stocks and crypto under pressure at the same time. Higher US rates would tighten global liquidity, while a stronger yen risks speeding up the unwind of yen-funded carry trades.