The Japanese yen exchange rate is soaring, and global stock and cryptocurrency markets are facing the risk of arbitrage trading and liquidation

The Japanese yen surged about 3% against the US dollar this month to its highest level since February, as the market is concerned that closing arbitrage trades will weaken the global stock market rally and impact the cryptocurrency market. Investors borrow yen to invest in high return assets, and the appreciation of the yen increases repayment costs, forcing investors to sell their positions. Andrea Gabellone, Global Head of Stocks at KBC Securities, stated that the Japanese yen is a warning signal for global stock markets, technology stocks are the most risky, and cryptocurrencies have also been impacted in history.