Cryptocurrency Volatility Traders Cited The Bank of Japan As A Major Source of Uncertainty

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Today’s Cryptocurrency Headline

While the Fed’s tightening cycle seems to be in its final stages, the Bank of Japan is yet to move the needle on rates. Replacing the US Federal Reserve (Fed), as the Bank of Japan (BOJ) could now lead to a major shift in global market flows. “I think the BOJ will be the most significant uncertainty factor in the future. Whether it is the Fed or the ECB, their policy paths have been clear, but the BOJ is not, which means that the BOJ is likely to ‘surprise’ us beyond expectations.” That’s the message from Griffin Ardern, volatility trader from crypto asset management firm Blofin. These liquidity-boosting policies have put downward pressure on global bond yields for years, adding trillions of dollars in global liquidity. The persistent easing bias over the years has popularized carry trades, which involve borrowing in yen and investing in high-yielding risk assets. Most economists polled by Reuters between Sept 8-19 poll expect the BOJ to end the negative interest rate policy and abolish the curve control program next year.

BingX’s Bitcoin Chart

Source: TradingView & BingX

BTC price action in recent months has tested the resolve of investors, but none more so than those who bought BTC over the past three months. Right now ETH buyers placed their biggest hopes on protocol upgrades that significantly reduced the need for new coin issuance when the network transitioned to a proof-of-stake consensus mechanism. But it’s hard to say how much of an impact this will have in the current bearish market conditions. The support level is at $26,200 and the resistance level is at $27,000.

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