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Yen carry trade: the hidden fuse behind BTC crashes The real threat from BOJ hikes isn’t the rate itself — it’s the global yen carry trade. Borrow near-zero yen → convert to USD → buy high-yield assets → pocket the spread. If Japan keeps hiking and the yen strengthens, the trade must unwind: sell overseas assets → buy back yen → repay debt. This isn’t a normal pullback. It’s global deleveraging. BTC, being the most liquid risk asset, often gets sold first.