The Japanese yen posted its biggest single-day gain since record interventions earlier this year, surging 2% against the US dollar. Japan’s Ministry of Finance deployed approximately 11.73 trillion yen, roughly $73 billion, in record interventions during April and May 2026 to arrest the currency’s decline. The Bank of Japan raised its policy rate to around 1% in June 2026, making borrowing yen significantly more expensive for carry trade positions. Historical data shows that BOJ rate hikes since 2024 have corresponded with Bitcoin drawdowns averaging approximately 27%. The USD/JPY pair trading around 162.3 to 162.9 in late July, levels not seen in nearly 40 years, amplifies the risk of a brutal carry trade unwind that could severely impact Bitcoin and Ethereum.
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