QCP: US-JAPAN RARE JOINT INTERVENTION MARKET, JAPANESE YEN, LONG-TERM US DEBT RETURN OR NEW VARIABLE FOR ENCRYPTED MARKET LIQUIDITY

On 3 August, QCP Capital sent a communication indicating that the United States and Japan had made a rare joint intervention last Friday and that the Federal Reserve in New York had purchased the yen on behalf of the United States Treasury, the first United States-Japan foreign exchange intervention since 2011, and the first joint operation dedicated to supporting the yen since 1998. According to QCP, this has refocused the market on long-term US debt return, which rose to about 5.27 per cent in 30 years, a new high since 2007, while the annual balanced inflation rate has remained at about 2.28 per cent and market attention has expanded to US debt issuance, investor demand and cross-border financial flows. For the encrypted market, the rapid appreciation of the yen may have triggered a silo of Japanese yen financing transactions and spread to risk assets such as BTC, ETH; but if the yen exchange rate stabilizes, it will also help to reduce demand for follow-up interventions and ease liquidity pressure on the United States debt market. Overall, the intervention was not a clear directional signal for encrypted assets, but highlighted the fact that the United States dollar/Japanese yen exchange rate, the Japanese financing environment and the long-term US debt return were becoming important factors affecting the BTC, ETH liquidity environment。