Part 9/10:
The question then becomes: Which force is stronger? Currently, markets have largely priced in the BOJ's move, with traders already hedging positions. This suggests the actual event may cause limited immediate chaos, but risks are substantial should the unwind accelerate unexpectedly.
Conclusion: Volatility on the Horizon
In summary, December 19th could mark a notable pivot point for Bitcoin due to Japan's interest rate hike and the unwinding of the yen carry trade. Although the event might be largely anticipated, the potential for sharp volatility remains high.
Key takeaways include:
Prepare for possible dips to $70K or $60K if panic ensues.
Use caution with leverage.
Watch the USDJPY exchange rate as an early indicator.