Hedge Funds Bet On Yen Strength As BTC Faces Carry-Trade Risk

Hedge funds are piling into bets that the Japanese yen will keep rising, with options positioning pointing to dollar-yen below 150 by year-end and, in some longer-dated trades, as low as 140. According to BeInCrypto, CME data showed the most-active dollar-yen contract on Tuesday was a November put at 142.86, while puts expiring by year-end outnumbered calls more than three to one. Bitcoin held near $78,848 on Wednesday, but a stronger yen could raise repayment costs for investors who used yen borrowing to fund dollar-denominated crypto positions.