Paragraph: The U.S. and Japan conducted their first coordinated yen-buying operation since 1998, reviving fears of a carry trade unwind that sent Bitcoin down 20% in days back in August 2024. Meanwhile, Bitcoin’s trading volume dominance just hit a 3-year high — a level historically associated with late bear market positioning and extra pressure on altcoins.
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Top Crypto News
U.S.-Japan intervention revives yen carry trade fears for Bitcoin
The U.S. and Japan conducted a joint currency intervention to buy and strengthen the Japanese yen, marking their first coordinated yen-buying operation since June 1998. This revived concerns about a potential unwind of the yen carry trade in the near term. Back in August 2024, a yen carry trade unwind caused Bitcoin’s price to drop by 20% in just a few days, putting additional pressure on risk assets.
However, for now, Bitcoin’s price remains range-bound, hovering around $64,000. Several altcoins outperformed it, with DCR, ALGO, and PUMP gaining more than 10% in a week. All eyes are now on Friday’s U.S. nonfarm payrolls report, which could shift expectations for future Fed rate decisions and bring higher volatility to crypto.
Other Top News
- Attackers exploited a critical firmware flaw in Coldcard hardware wallets, draining over $100 million worth of BTC.
- Cardano surged more than 25% over the week, driven by increased whale accumulation and renewed focus on its post-hardfork roadmap.
- BlackRock launched two new tokenized money market funds on Ethereum aimed at institutional investors and stablecoin issuers.
Bitcoin’s trading volume dominance hit a record. Is it bad for altcoins?
In July, Bitcoin accounted for 42.9% of total crypto trading volume, the highest level since Q1 2023. Historically, Bitcoin’s trading volume dominance has tended to rise during the later stages of bear markets as investors shift their focus toward identifying a potential market bottom. At the same time, Q3 has historically been the weakest quarter for altcoins, which could lead to capital rotating into Bitcoin and stablecoins.
These patterns suggest that altcoins could face increased pressure in the coming months. However, if Bitcoin enters a broader bull market, altcoins could outperform it over the short term.
Trading Lifehack
Identify market direction with trend channels
Instead of trying to predict the market’s next move, start by identifying the current trend. A trend channel is created by drawing two parallel lines, connecting the swing highs and lows. In a descending channel, like the one shown below, the upper line often acts as resistance, while the lower line may provide support.
Many traders use these levels to look for potential entry or exit points. For example, a rejection near the boundary may suggest the trend is still intact, while a channel breakout with strong volume could signal that momentum is changing. Keep in mind that no pattern is perfect, so trend channels work best when combined with other tools, such as technical indicators. You can draw trend channels and access technical indicators in the CEX.IO trading terminal.
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