Global macro factors may increase crypto sell-off pressure, analyst says

Volatility in U.S. Treasuries, a weakening Japanese yen, and surging international oil prices could increase selling pressure on cryptocurrencies, according to CoinDesk analyst Omkar Godbole. He noted that instability is growing in the U.S. Treasury market, with the ICE BofA MOVE Index recently jumping 14.7% to its highest level since April, which could dampen risk appetite. Additionally, the U.S. dollar-yen exchange rate is nearing 159 yen, raising concerns that a Bank of Japan intervention could trigger an unwinding of the yen carry trade and tighten global liquidity. Godbole also pointed to surging oil prices, with both West Texas Intermediate (WTI) and Brent crude exceeding $100 per barrel. Citing an International Energy Agency (IEA) warning about declining inventories due to conflict in Iran, he suggested that rising oil prices could heighten inflation and financial tightening, intensifying pressure on risk assets like crypto.