Don’t rush to sell!

[Plain Language Guide] This article refutes the claim that the current cryptocurrency downturn is caused by panic from yen carry trade unwinding. The author points out that yen leverage has dropped significantly, and most market leverage was cleared out in August.

The real driving force behind the decline is mechanical: as we enter December, institutional adjustments for risk resetting and tax loss harvesting have automatically triggered selling. As long as Bitcoin holds the key $80,000 - $82,000 level, the long-term structure remains excessive. This week’s Powell remarks and inflation data will bring further volatility.

Would you like me to explain the concept of tax loss harvesting in more detail?

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