U.S.-Japan intervention revives yen carry trade fears for bitcoin

The US government has backed Japan in a coordinated yen intervention for the first time since 2011, selling euros to buy yen. This rare action aims to stabilize the yen but risks euro depreciation. This move may trigger a ripple effect across global markets, impacting equities, bonds, and cryptocurrencies. Specifically, the intervention revives fears regarding the unwinding of yen carry trades, which could potentially increase volatility for bitcoin and other digital assets across the market.