$BTC Alert: A Rare Fed Move Could Shake Markets and Impact Crypto 🚨

Something unusual is brewing. The US Federal Reserve may intervene in currency markets, selling dollars and buying Japanese yen—an action not seen in decades. The New York Fed has already conducted rate checks, often a precursor to intervention.

Why it matters: Japan is under pressure. The yen has been weak for years, bond yields are near multi-decade highs, and the Bank of Japan remains tight. Past attempts by Japan alone in 2022 and 2024 failed—stabilization historically required US support.

Precedents to watch:

• 1985 Plaza Accord → sharp dollar decline, global assets and commodities surged

• 1998 Asian Financial Crisis → yen stabilized only after coordinated US action

Potential sequence if intervention occurs:

Dollars are created and sold, pushing the USD lower

Global liquidity improves, lifting risk assets

Crypto could see short-term pressure from carry trade unwinds, as in August 2024 when Bitcoin dropped sharply

Over time, dollar weakness tends to favor Bitcoin, which historically moves opposite the dollar and aligns with the yen, though BTC still appears undervalued