Markets are said to have priced in a 97% chance of a September BOJ rate hike, while the unwinding of yen carry trades is reportedly accelerating. Attention is focusing on movements in Bitcoin and other risk assets as the yen strengthens.
The BOJ is approaching its September monetary policy meeting, and data from 東京短資 has reportedly shown the probability of a September rate hike rising to 97%. As a rate hike appears increasingly likely, the yen reportedly strengthened to 152.89 yen at one point.
Against this backdrop of yen appreciation and heightened expectations for higher interest rates, yen-funded carry trades are being unwound, and selling pressure could spread across global risk assets, according to reports.
Bitcoin has fallen in the past during periods of BOJ rate hikes and yen appreciation, and it has been suggested that BTC could face headwinds again this time. BTC needs to be assessed alongside current price trends, the yen exchange rate and US interest-rate movements.
Going forward, the BOJ's stance on additional rate hikes, the extent of further yen appreciation and US interest-rate trends are expected to be watched as factors that could affect risk assets, including BTC, according to reports.