US yen intervention puts Bitcoin, risk assets on notice for liquidity flux

Written by William Subergstaff writerReviewed by Charles Bennettstaff editorWritten by William Subergstaff writerReviewed by Charles Bennettstaff editorUS yen intervention puts Bitcoin, risk assets on notice for liquidity fluxMarketsPublishedAug 4, 2026The first US-Japan joint yen intervention in 28 years came amid record bond yields and worries about the yen carry trade.Joint currency interventions in the yen by Japan and the US could ultimately benefit Bitcoin and risk assets. Key points:The first joint intervention in the yen between Japan and the US since the late 1990s could set a precedent for future moves.A liquidity crisis tied to the yen carry trade poses questions for Bitcoin (BTC) and risk assets as the two countries attempt a juggling act to stabilize the currency without impairing US Treasury markets.Japanese two-year bond yields rose above 1.57% on Monday.Bessent signals new era of US yen involvementWashington’s growing coordination with the Bank of Japan (BoJ) points to a potential boost in global dollar liquidity — even as it runs up against a yen carry trade unwind that could squeeze liquidity if it deepens further.Last week, the US and Japan conducted a rare joint intervention to prop up the yen, which had slid to 40-year lows of 164 per dollar — the first of its kind since 1998. The New York Federal Reserve Bank sold euros, rather than dollars, on behalf of the US Treasury. The sales involved the Exchange Stabilization Fund, or ESF, a stockpile of foreign exchange reserves.USD/JPY one-day chart for Tuesday. Source: Cointelegraph/TradingViewSubsequently, US Treasury Secretary Scott Bessent publicly placed emphasis on meeting with BoJ Governor Kazuo Ueda at the forthcoming G20 gathering of finance ministers in North Carolina at the end of August.“Japan’s economy continues to perform well under Prime Minister Takaichi, Governor Ueda, and the Bank of Japan Board, which has demonstrated a strong commitment to monetary and financial stability. We con…

US yen intervention puts Bitcoin, risk assets on notice for liquidity flux

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