$BTC 🚨POTENTIAL FED INTERVENTION — CRYPTO COULD BE IMPACTED QUICKLY.
An unusual macro scenario is developing underneath the surface. New indicators hint that the U. S. Federal Reserve might be getting ready for currency intervention, potentially involving the sale of dollars to bolster the Japanese yen — a rare occurrence in recent history. Recent rate evaluations by the New York Fed represent a typical early warning signal that direct action could be imminent.
The significance of this situation:
Japan faces significant challenges.
• The yen has been depreciating for several years.
• Bond yields have reached levels not seen for decades.
• Although the Bank of Japan is tightening its stance, the pressure persists.
Japan attempted to act independently in 2022 and 2024 — with little success. Historical evidence indicates that stabilization is only achieved when both the U. S. and Japan coordinate their efforts.
We've experienced similar situations previously:
• 1985 Plaza Accord → The dollar dropped by approximately 50%, leading to a rise in commodities and global assets.
• 1998 Asian Financial Crisis → The yen only regained stability following U. S. collaboration.
If the Fed decides to participate, the probable chain reaction would be:
• Dollar sales → USD declines
• Increased liquidity → Upward adjustment of risk assets
However, there is a complication for crypto.
A stronger yen could lead to the unwinding of yen carry trades, prompting short-term deleveraging. We witnessed this in August 2024 when BTC rapidly fell from around $64K to approximately $49K. There is a genuine risk of short-term volatility.
Yet, when looking at the bigger picture — a weaker dollar historically serves as bullish support.
Bitcoin generally moves in the opposite direction of the U. S. dollar and displays a significant positive relationship with the Japanese yen. Nonetheless, BTC hasn’t fully responded to the extent of global currency debasement occurring.
Should intervention take place, this could emerge as one of the key macro turning points of 2026.
Are the markets prepared for what comes next? 👀
This could be a quiet period leading up to a significant change.
Stay updated with Wendy for the latest news.
#Macro #Bitcoin #GlobalLiquidity
