Yen Intervention Fails to Save Market as Carry Trade Looms Over Crypto

Japan's Ministry of Finance recently announced its strongest intervention yet, injecting ¥15.4 trillion ($97 billion) into the market from July 30 to August 26.

The move marked the first such announcement since 1998, but the currency quickly retreated below ¥160 and is now trading at ¥160.11.

The Bank of Japan's limited ability to implement aggressive rate hikes due to a fiscal debt-to-GDP ratio of 240% makes its intervention more of a 'speed bump' than a 'trend change.'

Despite this, the yen carry trade poses a significant risk to Bitcoin's price, with a 27% average drop in value following every BOJ rate hike since March 2024.