In fact, even if the Bank of Japan (BOJ) raises interest rates, arbitrage trading has still been ongoing, but the interest has been decreasing. Many positions have exited and shifted to the Swiss franc, which now offers the highest yield for cashing out. Since the Bank of Japan decided to raise interest rates, funds have gradually concentrated on the Swiss franc.

Next year, the continued interest rate hikes by the Bank of Japan and the Federal Reserve's indecision regarding rate cuts will be a point of interest. Will the Japan-U.S. carry trade be completely abandoned, or will it just yield lower interest but still be feasible? I lean towards the latter. Because if it cannot be done at all, the global economic system would undergo significant changes. The likelihood of that is low.

As for the interest rate hike by the Bank of Japan, it is completely absurd to claim that it affects the rise and fall of BTC. One is a safe-haven asset, with risk-free profits. The other is the riskiest among risk assets. Even if the risk-free arbitrage interest decreases, it doesn't mean that people will take their money to buy risk assets. The media likes to assign reasons to market performance after the fact, but in reality, they themselves don't know why the market fluctuated that way at the time.

#BTC