Bitcoin traders watch BOJ rate call as yen short bets hit nine-year high

CoinDesk reports that bitcoin traders are closely watching the Bank of Japan's interest-rate decision due Tuesday. Data for the week ended June 9 show leveraged funds built speculative short positions in the yen to more than 115,000 contracts, the largest since November 2017. If the BOJ lifts rates to 1% as expected and signals more tightening ahead, traders may rush to cover those shorts. That could strengthen the yen and unsettle yen-funded carry trades. A similar dynamic played out after the BOJ's July 2024 rate increase, when a rapid squeeze in yen shorts drove a sharp appreciation in the currency and triggered heavy volatility across Wall Street, the Nikkei, and crypto markets. Bitcoin slid from about $65,000 to $50,000 in roughly a week.