Reported 2 months ago
Wall Street is experiencing turmoil not due to economic reports, but because of a leveraged yen carry trade that has triggered significant sell-offs, especially in the crypto market. This trading strategy, which involves borrowing yen at low interest to invest in higher-yield assets, has become untenable after recent interest rate hikes by the Bank of Japan. This led to a rapid decline in major cryptocurrencies like Bitcoin and Ethereum, with fears that more forced liquidations could further destabilize the market.
Source: YAHOO