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Here’s How to Navigate the Yen Carry Trade in 2025 as Japan Faces Economic Shift: Bybit

The leading crypto derivatives trading platform, Bybit, has outlined potential challenges awaiting the Japanese yen carry trade in 2025 as the Bank of Japan (BoJ) implements policy changes and faces evolving economic conditions. According to the report , the yen’s status as a primary funding currency in the foreign exchange (FX) market could be questioned in the coming months. The evolving Japanese financial landscape could see an increased risk of rapid unwinding in yen carry trades, raising the need for alternative funding currencies and a diversification of currency exposure for traders. Effectiveness of the Yen Carry Trade Over the last three decades, the BoJ has maintained ultra-loose monetary policies, sustaining a zero or negative interest rate environment to fight inflation and stimulate economic growth. As a result, the yen carry trade has been a fundamental strategy for traders in global FX markets. Carry trade is a strategy where FX traders take advantage of differences in interest rates between currencies. This popular investment strategy entails borrowing money in currencies with low interest rates and investing in stocks and bonds based on other currencies with higher interest rates. Due to the yen’s low interest rates, it has remained an attractive funding currency over the years. Bybit noted that the effectiveness of the yen carry trade has been closely linked to global economic conditions like the U.S. Federal Reserve’s aggressive rate hikes. However, this carry trade has also been vulnerable to periods of financial stress and is becoming increasingly reliant on stable currency conditions. This year, macroeconomic factors reshaping Japan’s economy are driving a significant transformation in the landscape for the yen trade. These factors include rising inflation, wage growth, and speculation about changes in the BoJ’s monetary policies. Adaptability and Diversification Before now, Japan has struggled with deflation and stagnant wage growth; however, recent years have seen inflation consistently surpass the BoJ’s long-standing 2% target. Since the BoJ has historically maintained ultra-loose policies, growing inflationary pressures may cause the central bank to hike interest rates. The implications of such decisions could cause a ripple effect in global FX dynamics, altering the yen’s appeal for carry trades. While the yen may continue to serve as the preferred currency for carry trades, the BoJ’s actions could gradually reduce its dominance. Bybit said FX traders could explore other high-yielding currencies like the Mexican peso (MXN), South African rand (ZAR), and Turkish lira (TRY) as alternatives to the yen; however, each currency comes with risks. “Ultimately, the key to navigating the evolving carry trade landscape in 2025 lies in adaptability,” Bybit noted, adding that traders need dynamic risk management strategies and diversification to remain afloat. The post Here’s How to Navigate the Yen Carry Trade in 2025 as Japan Faces Economic Shift: Bybit appeared first on CryptoPotato . Crypto Briefing

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Cardano Remains In Consolidation – Expert Projects 25% Price Move

Cardano is trading above key demand levels after experiencing a volatile Friday. The market reacted sharply to the news of Bybit’s $1.4 billion hack, causing widespread fear and uncertainty. Prices across the crypto market, including Cardano, dropped from local highs, testing critical support levels. ADA fell over 7% on Friday as panic-driven selling took hold, but the market has since stabilized as Bybit reassured investors with a strong response. Related Reading: Bitcoin Faces Serious Price Compression – What Happened Last Time Despite the short-term volatility, analysts remain optimistic about ADA’s next move. Top analyst Ali Martinez shared a technical analysis on X, revealing that Cardano remains in a consolidation phase and is setting up for a potential 25% price move. Historically, consolidation at key demand levels has led to strong breakouts, and if ADA maintains support above its current range, a bullish move could follow. Investors are closely watching the price action as ADA continues to trade within a tight range. If bullish momentum builds, a breakout could send Cardano toward higher supply zones, confirming a new upward trend. However, if market sentiment weakens, a deeper retrace into lower demand levels may occur. The next few days will be crucial in determining Cardano’s short-term direction. Cardano Holds Key Demand Amid Uncertainty Cardano is holding above key demand levels amid recent uncertainty and fear triggered by Bybit’s hack. The event shook the market, causing a wave of selling pressure that pushed most altcoins, including ADA, into low demand levels. The extreme selling pressure that began in late December remains a concern for investors, as volatility continues to dominate price action. Despite this, ADA has managed to maintain its position above critical support zones, fueling speculation about a possible recovery. Bulls are growing increasingly cautious as ADA struggles to reclaim key supply levels. Many investors remain hopeful that the current consolidation phase will lead to a breakout. Martinez’s analysis on X suggests that Cardano remains in consolidation and could be setting up for a potential 25% price move. Historically, periods of extended consolidation at major support levels have led to explosive rallies, and ADA’s current positioning could indicate a major move is on the horizon. If Cardano successfully reclaims key supply levels and pushes above resistance zones, a massive recovery rally could follow, propelling prices toward multi-month highs. However, losing its current demand zone could trigger a significant correction, further extending ADA’s downward trend. The next few days will be crucial in determining the direction of Cardano’s price action. Related Reading: Cardano Must Hold Critical Support Around $0.67 To Sustain Bull Run – Details ADA Prepares For A Move Cardano (ADA) is trading at $0.76 after failing to reclaim the $0.82 mark for the second time. The price has been struggling to gain momentum, with selling pressure keeping it below key resistance levels. Bulls need to push above $0.82 and hold it as support to establish a foundation for higher prices. If ADA successfully reclaims this level, the next key target is $0.85, which aligns with the 4-hour 200 moving average, a critical indicator for short-term strength and momentum. For ADA to confirm a bullish recovery, buyers must defend the $0.73 level over the coming days. Holding above this level will demonstrate strength and allow the price to build a base for a potential rally. However, if Cardano fails to hold above $0.73, further downside could be expected, with the risk of a drop into lower demand zones. Related Reading: Ethereum Holds Key Support – Analyst Doubts Bears Can Defend $4K Anymore Investors remain cautious as ADA continues to trade within a tight range, and a breakout in either direction could set the stage for the next major move. If bulls manage to reclaim key resistance levels, a strong recovery rally could follow. However, failure to break above resistance could keep ADA trapped in consolidation for an extended period. Featured image from Dall-E, chart from TradingView Crypto Briefing