The unwinding of popular strategies such as the yen carry trade in traditional markets have been adding to the selling pressure on bitcoin.
The yen carry-trade strategy involves borrowing the relatively low-yielding yen and investing in other currencies offering higher returns. According to Matt Maley, chief market strategist at Miller Tabak & Co, “Bitcoin and other cryptocurrencies are assets that tend to move with liquidity. When liquidity is more plentiful, cryptos rally, and when it’s less plentiful, they decline.” “Well, one of the best indicators for the level of liquidity in the system is the yen carry trade.” Source: zerohedge
Bitcoin investors are now eyeing the $80,000 price level for support
- Rate cuts can't pump BTC. - Pro-crypto President can't pump BTC. - Weak dollar can't pump BTC. - Institutional adoption can't pump BTC. - Fed injecting liquidity can't pump BTC. - Stocks new ATH can't pump BTC. Is there anything that could pump BTC now? Which comes first? BTC $300k or a massive suck out of global liquidity??? Source: Zerohedge
Tether owns 3X more gold than bitcoin.
Gold: Tether holds ~140 tons = $24B Bitcoin: Tether holds $8B in Bitcoin Source: Marin Katusa @MarinKatusa
In exactly 50 days, Bitcoin's circulating supply will hit 20m.
At that point, there will only be 1m Bitcoin left to be mined. Forever. Source: Jesse Myers (Croesus 🔴) @Croesus_BTC
US SENATE VOTING ON CLARITY ACT CANCELLED 🚨 Most people don't know the real reason behind this.
The Senate Banking Committee has pulled the vote on the Clarity Act after major pushback from the crypto industry, including Coinbase’s announcement that it won’t support the Crypto Market Structure Bill. Key points of concern: Stablecoin Yields Crushed The Act would ban interest payments on stablecoins, benefiting big banks by eliminating competition and protecting their deposit monopoly. Tokenized Equities Restricted Tokenized stocks would fall under the SEC’s strict securities rules, effectively blocking peer-to-peer or DeFi-style stock tokenization. Permissionless DeFi Threatened AML/KYC rules would require identity verification and monitoring, undermining DeFi’s core principles of anonymity and open access.
Bitcoin's longer term trend looks to be holding.
We haven't traded this much above the 50 day since all time highs... Source: The Market Ear, LSEG Workspace
In case you missed it...
Source: Documenting ₿itcoin
So what's going on in markets this morning? Why are Cryptos tumbling again?
A ris-off signal to start December? Well, it seems that the spike in Japanese bonds yields is the culprit... Indeed, Japanese bonds are puking on renewed expectations of rate hike, as the 2Yr JGB yield is above 1% for the first time since 2008. The yen is firming and the Nikkei 225 index is tumbling. And since nowadays Bitcoin always correlates with anything that's down, we have a 5% dump in Bitcoin in Asian trading to $85k.... In the middle of Asian session, BoJ Governor Ueda said he was consider the "pros and cons" of raising interest rates at the BoJ's December and idea that the market got hold of last week as the odds of a BoJ Dec rate hike increased from 30% to 50%. Source: Bloomberg, zerohedge
