This reflects growing pressure on the BOJ to normalize policy amid 40-year high yen volatility, which could collapse the $1.2T JPY carry trade that's been funding altcoin liquidity. The timing aligns with US-Japan bond yield differentials narrowing to 3.8% (from 4.5% in Q1), creating a critical inflection point for risk assets.

Japanese Yen

Morgan Stanley Japan CEO Alberto Tamura expressed hope for the yen to strengthen to around 140 against the dollar, citing Bank of Japan action as key.