A potential 20% drop in Bitcoin to $75,000 or $70,000 should be viewed as a liquidity event rather than a fundamental breakdown of the crypto thesis.
"if we do get that 20% flush, if we do see Bitcoin test 75K or 70K, recognize it for what it is, a liquidity event, not a fundamental broken thesis for crypto."
Global liquidity is projected to trend upwards in 2026, suggesting that any dips in Bitcoin price caused by Japanese market actions could present opportunities for patient investors.
"with the Fed easing and global liquidity trending up for 2026, any dip caused by Japan could be an opportunity for the patient investor."
100% of economists surveyed by Bloomberg expect the Bank of Japan to raise interest rates on December 19th.
"On the 19th of December, the Bank of Japan or BOJ is widely expected to raise interest rates. According to a Bloomberg survey, 100% of economists expect a hike."
A rapid strengthening of the yen against the dollar, specifically dropping below 148 or 145, will serve as an early indicator of the yen carry trade unwinding.
"If the yen starts strengthening rapidly, dropping below 148 or 145 against the dollar, that is your early warning signal that the carry trade is indeed unwinding."
