@tiffanygracie
Bank of Japan Governor Kazuo Ueda's hawkish signal of a potential December rate hike strengthens the yen, prompting a rapid unwind of the yen carry trade. Investors, who borrowed cheap yen to fund high-yield bets in US Treasuries and risk assets like crypto, now face higher borrowing costs and currency losses. This forces mass selling: US Treasuries plummet (yields spike to 4.09%), eroding bond prices, while liquidity drains from speculative crypto markets, triggering Bitcoin's 8% plunge amid global risk-off panic.
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