Goldman Sachs says carry trades are in the strongest environment since 2000, citing the yen’s slide against the dollar. The $9.5 trillion daily currency market sees traders borrowing at low yen rates and loading positions in risk assets, including Bitcoin.

The bank now projects USD/JPY to hit 162 in three months, 163 in six, and 165 a year from now, up from its earlier 155 target. Japanese authorities have injected 11 trillion yen between April and May 2026 to stem the decline, but the intervention has not reversed the trend.

Yen‑funded carry trades pump liquidity into crypto. The August 2024 unwind forced Bitcoin and equities to fall as leveraged positions liquidated, showing the tight link between the yen’s weakness and risk‑asset pricing. If the rate differential stays, Bitcoin could receive a continued capital inflow.

Investors must watch the Bank of Japan, which has kept policy changes slow. A sudden hawkish shift would dent carry‑trade returns and could trigger a pullback in risk assets. Monitoring BOJ moves is essential for those exposed to crypto and emerging‑market debt.