Duke Waldrop: Bank Of Japan Liquidity Shock Could Impact Bitcoin

Bitcoin dropped to 79000 dollars this weekend as the Fed and the Bank of Japan prepare to announce their rate decisions. Duke Waldrop, Head of Asia Markets at UTXO Management, explained that a yen repricing affects Bitcoin first because macro funds with yen-denominated liabilities are forced to sell, utilizing Bitcoin's 24/7 liquidity for exit. Waldrop also discussed Metaplanet trading below its Bitcoin value, the implications of potential removal from MSCI indexes on November 30, and the focus on the Tokyo team's execution. He highlighted how Asian investors are adapting to treasury strategies and the dynamics of the yen carry trade, which leads to Bitcoin experiencing liquidity shocks ahead of others. Overleveraged macro funds are likely to be the first sellers if the Bank of Japan surprises the market. Additionally, he noted that Metaplanet's trading metrics are influenced by its Bitcoin per share value, and emphasized that the MSCI removal does not alter the fundamental outlook.

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