The US Treasury bought 79.4 billion yen on July 31 through the Federal Reserve Bank of New York, selling euros from its Exchange Stabilization Fund to counter disorderly yen moves. The Fed did not intervene in foreign-exchange markets, and the euro-funded operation does not represent new Fed dollar liquidity entering cryptocurrency markets. Central-bank dollar swaps declined from $250 million on June 30 to $207 million on September 30, 2026, while the Bank of Japan had no outstanding balance at quarter-end. Yen appreciation would make unhedged yen borrowing more expensive to repay and could increase margin requirements, forcing leveraged investors to raise cash or reduce positions, including in bitcoin. The report does not establish current bitcoin flows or an ongoing deleveraging process.
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