I know Iโm a bit late breaking this down, but itโs important to understand what actually happened.
First โ an important correction.
That instant drop you saw on the chart wasnโt institutions. Big banks donโt react in seconds. The first sharp move was driven mainly by retail traders and algos reacting to the headline.
Institutional moves from macro news like this usually come with a delay, not instantly.
Now the bigger picture.
For years, Japanโs near-zero interest rates made the Japanese Yen the go-to funding currency.
Institutions borrowed cheap Yen, converted it to USD, and parked that money in higher-yield assets โ stocks, bonds, and yes, Bitcoin.
This strategy is called the Yen carry trade.
Hereโs where the pressure starts.
Japan is hiking rates
The US is cutting rates
That squeezes institutions from both sides:
Borrowing in Yen gets more expensive
Returns in USD start shrinking
The carry trade becomes less attractive
Thatโs where the real selling pressure comes from โ and it shows up later, not immediately.
This macro shift isnโt a one-day story.
I believe 2026 will unfold a lot.
A few more rate hikes from Japan combined with Fed rate cuts could seriously change the market landscape.
Macro always moves slow โ but when it hits, it hits hard. ๐โก๏ธ๐
$BTC #BTCVSGOLD #CryptoNewss #USNonFarmPayrollReport
