While fear grips the cryptocurrency market, prominent financial voices are sending a clear message: now is the time to accumulate, not panic. Binance founder Changpeng Zhao, known as CZ, recently advised that buying during periods of peak fear is a better strategy than chasing greed-fueled rallies. Echoing this sentiment, Robert Kiyosaki, author of “Rich Dad, Poor Dad,” highlighted a major shift in global finance as a reason to turn to assets like Bitcoin and Ethereum for protection.

Their comments coincide with the crypto Fear and Greed Index falling to a reading of 20, indicating significant apprehension among investors. Yet, on-chain metrics suggest the market isn’t breaking down but rather entering a stable phase that analysts have dubbed a “quiet equilibrium.”

Collapse of Japan’s Carry Trade

A major underlying factor influencing global markets is the breakdown of Japan’s carry trade. For three decades, institutions have used the Japanese yen as a source of cheap leverage, borrowing at near-zero interest rates to invest in higher-yielding risk assets worldwide, including stocks, bonds, and crypto. This long-standing financial engine is now sputtering.

The Bank of Japan’s recent rate hikes have pushed government bond yields above 1.7% for the first time since 2008. As the cost of borrowing yen increases, the foundation of the carry trade has cracked. This forces investors to liquidate foreign assets to cover their rising yen-denominated liabilities, putting pressure on global markets.

Bitcoin Metrics Signal a Market Reset

Instead of a widespread sell-off, Bitcoin’s on-chain data points to a market that is resetting. According to analysis from CryptoQuant, Bitcoin’s Net Realized Profit and Loss (NRPL) indicator is moving back toward the zero line after a period of volatility. This pattern often signals the end of forced selling and the beginning of a more neutral and stable phase, with prices around the $90,000 level reflecting a truce between buyers and sellers.

Analysts describe this as the market’s equilibrium zone—a calm period where capital decides its next move. If the NRPL metric remains above zero, it could help build a strong base for a recovery. A dip into negative territory, however, would confirm underlying weakness. Further supporting the idea of a market floor, the anchored Volume-Weighted Average Price (VWAP) indicator suggests Bitcoin is currently undervalued, having recently fallen below levels tied to key events like Donald Trump’s election victory and the fourth halving.

Disclaimer: The information provided in this article is for informational purposes only and does not constitute financial advice, investment advice, or any other sort of advice. You should not treat any of the website’s content as such. Always conduct your own research and consult with a professional financial advisor before making any investment decisions.