Bitcoin (CRYPTO:BTC) could be exposed to another sharp sell-off as speculation builds around a possible Japanese yen intervention.
Previous yen intervention episodes coincided with Bitcoin falling roughly 30% from local highs before stabilising.
Traders are closely watching the historical pattern, often referred to as the yen carry trade fractal, for clues on the next move.
A yen intervention occurs when Japanese authorities step into foreign exchange markets to strengthen the currency.
This typically involves selling US dollars and buying yen to slow excessive depreciation.
Over the weekend, market attention intensified after reports that the New York Federal Reserve conducted rate checks in the USD/JPY pair.
Such checks are often viewed by foreign exchange traders as an early signal of coordinated intervention.
These developments followed public comments highlighting close coordination between the United States and Japan on currency matters.
In the two most recent intervention periods, Bitcoin declined by about 30% as leveraged yen carry trades were unwound.