Matrixport: The market tends to attribute the sharp fall of Bitcoin to the liquidation of Yen arbitrage trades

Matrixport released a chart today stating that the market tends to attribute Bitcoin's plunge to the liquidation of Yen arbitrage trades. Many financial market participants who borrowed yen to invest in high-yield assets are now reversing their positions, with Bitcoin becoming a victim in this process. The unexpected interest rate hike by the Bank of Japan, coupled with market expectations for a Fed rate cut, has increased uncertainty about central bank policies and led to deleveraging in the financial system. According to some traders, this is precisely what caused the drop in Bitcoin prices.