Bitcoin traders need to pay attention to the Bank of Japan's interest rate decision, as short positions in the yen hit a nine-year high

According to CoinDesk, Bitcoin traders need to pay attention to the Bank of Japan's interest rate decision on Tuesday this week. As of the week ending June 9th, the speculative short positions in Japanese yen held by leveraged funds increased to over 115000 contracts, the highest since November 2017. If the Bank of Japan raises interest rates to 1% as expected and implies tightening, these short positions may be liquidated, triggering a rise in the yen and impacting yen financing arbitrage trading. After the Bank of Japan raised interest rates in July 2024, the rapid liquidation of short positions in the yen triggered a sharp rise in the yen, causing severe fluctuations on Wall Street, the Nikkei Index, and the cryptocurrency market. Bitcoin fell from about $65000 to $50000 within a week.