Analysis: Bitcoin traders should pay attention to the Bank of Japan's interest rate hike; short positions in the yen hit a nine-year high.

CoinFeed reported on June 15th, citing CoinDesk, that Bitcoin traders should pay close attention to the Bank of Japan's interest rate decision on Tuesday. As of the week ending June 9th, leveraged funds held over 115,000 speculative short positions in the yen, the highest level since November 2017. If the Bank of Japan raises interest rates to 1% as expected and hints at further tightening, these short positions could be liquidated, triggering a yen appreciation and impacting yen-funded carry trades. Carry traders borrow yen to invest in high-yield, risky assets, fueling the bull markets on Wall Street and in the bond market for years, and are also considered to support the crypto market. Following the Bank of Japan's rate hike in July 2024, a rapid liquidation of yen short positions triggered a surge in the yen, causing significant volatility in Wall Street, the Nikkei index, and the crypto market, with Bitcoin falling from approximately $65,000 to $50,000 within a week.