Bitcoin's correlation with dollar-yen rate hits -0.90, undercutting 'carry trade' theory
coindesk.com
Bitcoin's correlation with the dollar-yen rate just hit -0.90 — a near-perfect inverse link that challenges the popular theory that a stronger yen kills crypto appetite.
Carry Trade TheoryRisk-On/Risk-Off FrameworkCorrelation vs. CausationMarket Contagion Theory
Theory Briefing
- Bitcoin's 52-week correlation with the dollar-yen rate has reached -0.90, one of the strongest inverse relationships seen between the two assets.
- The carry trade theory predicts a strengthening yen triggers risk aversion, pulling money out of crypto — but Bitcoin's actual behavior runs counter to that.
- A -0.90 correlation is close to a perfect inverse relationship, raising the question of whether a rival explanation better fits Bitcoin's price moves.