HashKey analyst: Yen carry trade unwinding has limited impact on crypto markets

Jeffrey Ding, chief analyst at HashKey Group, noted that the impact of the unwinding of Japanese yen carry trades on cryptocurrencies is limited, primarily affecting U.S. bonds and equities instead, according to Odaily. He suggested that increased U.S. dollar liquidity could eventually benefit the crypto market. Ding also speculated that a higher-than-expected rate cut from the U.S. Fed could prompt a V-shaped market recovery, though he considers this unlikely. In addition, he remarked that Middle Eastern tensions are largely factored into current market prices, with further actions anticipated from Iran. On the potential U.S. recession, Ding stated that its likelihood remains uncertain, but a long-term decline in the U.S. dollar would generally boost risk asset prices, with Bitcoin being especially responsive.