Bitcoin dropped after Bank of Japan hints at a December rate hike — markets flash back to August’s carry-trade scare and crypto dumps harder than stocks. Imran Lakha (Options Insight) & David Brickell (FRNT) push back: the real “carry unwind” fear (Japanese investors repatriating $4T in foreign assets) is overblown — domestic institutions move slowly and Japan’s stagflation mess actually makes the yen weaker long-term. Real problem remains US funding stress: TGA drawdown slowed by heavy T-bill issuance, QT ends this week but front-end pressures still building. Fed rate cut next week helps a little, but real relief only comes when the Fed proactively supplies front-end liquidity (“not-QE QE”). Until then, expect choppy price action into year-end.
Crypto Options Unplugged