Yen Carry Trade Chaos: How It Could Shake Up Bitcoin, Web3, and Hard Assets

Wealth Matters 3.0 Web3 Wednesday Issue

Is the world turning upside down? After decades of the Japanese monetary dragon sleeping nicely at zero percent, rumblings of its re-awakening are sending shockwaves through almost every asset class including hard assets like Bitcoin, and Real Estate.

The global economic landscape is constantly shifting, and savvy investors must stay ahead of the curve. One such force that's gaining momentum in 2024 in recent weeks is the Yen carry trade—and its potential ripple effects on cryptocurrencies, Web3 ventures, Bitcoin, and traditional hard assets like real estate. Let's break down how this powerful financial mechanism works and what it means for your investment strategy, or the web3 startup funding environment.

Understanding the Yen Carry Trade

The Yen carry trade is a classic financial strategy that has shaped global markets for decades.

Here's how it works: Investors borrow Japanese Yen at ultra-low interest rates—thanks to Japan’s near-zero monetary policy—and invest that capital in asset…