Analysis: Yen arbitrage trading has significantly contracted, and Bitcoin may strengthen after the Bank of Japan's policy pressure eases.

On December 14, Glassnode co-founder Negentropic tweeted, “The market is not afraid of tightening (rate hikes), but rather of uncertainty. The Bank of Japan’s policy normalization brings clear expectations to the global financing environment, even if leverage is under short-term pressure. Yen arbitrage trading has significantly contracted, and volatility signals opportunities. Bitcoin tends to strengthen after policy pressures are released, not before. Chaos diminishes, signals strengthen. This seems to be preparing for asymmetric upside risk.”

BTC-1.18%
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