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2024-08-06 17:50:43

SimplifiedPrivacy.com on Nostr: Today Monero is listed as a front-page trending coin on Coinmarketcap ...

Today Monero is listed as a front-page trending coin on Coinmarketcap



But it isn't rising that much, it's just that it didn't collapse with coins primarily traded on centralized exchanges. Monero's attitude of "use it" over hodl & leverage keeps it stable.

And special to this situation, as I've written about below, this entire collapse is triggered by Japanese yen carry trades.
Monero's history of being banned from the Japanese exchanges, makes it very few people long XMR/JPY on leverage

Fast Bird's Eye View of Market Collapse:

--From 1993 to 2021, Japan had essentially no inflation
--From 2021 to now, Japan's inflation is rising

In response to this:
--Bank of Japan raised interest rates
--This strengthens the Yen

At the same time:
--US Federal Reserve is lowering
--Weak US jobs

This sent the USD to Japanese Yen exchange rate down.
(weak dollar, strong yen)

Because:
Since 1993 Japan's currency has been nearly free to borrow
And the central bank can print as much as it wants

Then:
Everyone and their mother borrows yen (at lower interest rates) to buy assets overseas at higher yield,

But now:
Huge players are having to pay more to borrow,
As the exchange rate moves against them,

Therefore:
They sell.
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