PANews reported on April 14th that, according to CoinDesk, Bank of Japan Governor Kazuo Ueda signaled a dovish stance ahead of the April 28th policy meeting, indicating a more cautious approach given the uncertainty surrounding the impact of the Iran war on the Japanese economy. This provided support for Bitcoin breaking through $74,000. On August 5th, 2024, the Bank of Japan's unexpected interest rate hike triggered the unwinding of yen carry trades, causing Bitcoin to fall from $64,000 to $49,000 within 48 hours. The dovish Bank of Japan's maintenance of a weak yen keeps carry trade funding costs low, supporting leveraged positions in risk assets, including crypto perpetual contracts. With over 90% of Japan's oil imports passing through the Strait of Hormuz, if US-Iran negotiations progress and oil prices continue to fall, Japan's inflationary pressures will further ease, leaving the Bank of Japan with even less reason to raise interest rates, thus extending the window for carry trades to support risk assets.