2025-12-09 19:20:32

Recently, there's been an interesting phenomenon in the market—BTC’s price movements have been almost perfectly in sync with the Japanese yen.

A German financial journalist, Holger Zschäpitz, noticed this at the beginning of December. His interpretation is: as Japan raises interest rates, investors are recalculating their positions. Those previous arbitrage trades funded by cheap yen now need to have their risks reassessed. As a result, Bitcoin's price is basically following the yen’s rhythm, with a correlation that's almost absurdly strong.

To put it simply, the old playbook of borrowing low-interest yen to buy high-yield assets is being restructured due to the Bank of Japan’s policy shift. This ripple effect serves as a lesson for us—the boundaries between the crypto market and traditional finance aren’t as clear-cut as we might think.

BTC-1.92%

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MechanicalMartel

· 12-09 21:17

Haha, the yen carry trade has collapsed, and BTC is getting dragged down with it—absolutely wild. Thinking about those leverage traders, they must be having a tough time now. This is just ridiculous. The crypto world really isn’t lawless after all. With one move from the Bank of Japan, global assets have to dance along—it’s a bit disgusting. So crypto can’t really be independent after all; it’s all just an illusion. Damn, this correlation—can we get a reversal someday? Those who borrowed yen to trade crypto, are they making a killing or bleeding out now? Just thinking about it hurts.

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GasFeeCrier

· 12-09 19:50

The yen raises interest rates and BTC follows suit—how is this not a joke? --- Arbitrage trades blow up, and the crypto world has to suffer the consequences too. Clearly, the boundaries here aren't well defined. --- Haha, I knew it—the people who got rich off yen arbitrage are panicking now. --- Wait, BTC is tied to the yen now? What does that mean? Has crypto become just a little brother to traditional finance? --- Holger's observations are spot on—this is real alpha. --- Once again, we've been fleeced by traditional finance. Where's the crypto independence, man? --- The Bank of Japan sneezes, and global crypto catches a cold. And they still dare talk about decentralization? --- I just want to know when BTC can break free from this logic chain.

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RugPullAlertBot

· 12-09 19:48

A round of yen rate hikes, and BTC shakes along with it. This arbitrage game can't be played anymore. That's the real truth—crypto isn't as independent as people imagine. To put it bluntly, it's still a puppet of traditional finance. A single decision from the Bank of Japan and the global capital flow has to be reshuffled—it's terrifying. Thinking about those who were mining with cheap yen, they must be crying now. Tied to the yen? Isn't that normal? What does this say? Don't we all know deep down? Forget it, now all my decisions have to depend on the Bank of Japan. Ridiculous.

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RektRecorder

· 12-09 19:47

As soon as the yen rate hike happened, arbitrage players immediately dumped their positions and ran, dragging BTC down with them. So this is what they call decentralization, huh, haha. Seriously, I thought crypto and traditional finance had nothing to do with each other, but one policy shift over there and we have to follow suit. The entry barrier for this market is still way too low. Once the arbitrage opportunity disappears, investors have to cut their positions. Ultimately, it's still a liquidity issue. BTC being entangled with the yen was bound to cause trouble sooner or later. Wait, so does that mean those who got rich from yen arbitrage are all crying now? At first glance, it seems tied to the yen, but in reality, it's just big capital using the yen as an excuse for hedging. No matter how closely we retail investors watch, we can't change the trend. The Bank of Japan really played a brilliant move here, indirectly taking a cut from the crypto market. I didn't expect this kind of chain reaction.

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PaperHandSister

· 12-09 19:38

As soon as the yen raises interest rates, BTC starts shaking along with it, and all the arbitrage trades get thrown into chaos. Now it makes sense—crypto isn’t nearly as independent as people imagine. When traditional finance sneezes, crypto catches a cold. This move by the Bank of Japan directly exposed the old tricks of carry trades—unbelievable. So, while us retail traders are still blindly guessing price movements, the big players have long been doing cross-market arbitrage. Looks like we need to keep a close eye on what’s happening in Japan, or we’ll get fleeced again.

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MoonWaterDroplets

· 12-09 19:30

Oh, now I finally get it—everything that happens in the crypto world is still ultimately under the control of traditional finance. When the Bank of Japan makes a move, assets around the world start trembling. How ironic is that? When arbitrage trades collapse, BTC goes down with them. Turns out, we’re all in the same boat.

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