It’s been nine months since the Japan Yen carry trade unwind back in August of last year. And although the effects didn’t cascade as all the doomers were expecting, it’s certainly left some residual fears amid market uncertainty. The recent macro-economic headwinds from Trumps tariff policies have further added fuel to the uncertainty for risk-on assets as markets continue to fall off a cliff. However, despite well over $5 trillion being wiped from the S&P in the recent days, $BTC has continued to show signs of relative strength. I have to emphasize relative here, because we did still see a significant drawdown following global market reactions due to tariffs.
This brings me to the topic of debate, and this post by Jeff Park of Bitwise following the events of the past week.
Bitcoin has always been considered a risk-on asset, typically correlated with the Nasdaq. Arguably, the yen carry trade has been a benefactor for these types of assets. As the current macro-economic situation would suggest, the uncertainty has consequently caused the yen
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