# An unintuitive explanation for why everything is down

Source: https://x.com/jonwu_/status/1820283967049965909
Kiwi News: https://news.kiwistand.com/stories/An-unintuitive-explanation-for-why-everything-is-down?index=0x66b04fb87b75e700dd8f0a1d657c659001b21c8c7b19a344d30bcb6b24fb8a6d84a938f5
Submitted by zinkk.eth on 2024-08-05 UTC, 6 upvotes, 1 comment

It seems unintuitive that a small 25 basis point interest rate hike in Japan would spike all risk assets, including tonight's -20% $ETH candle.

But you need to understand the way the carry trade works:

It's a leveraged unwinding.

## Comments

**tim**: - https://www.youtube.com/watch?v=TjM3OYBJSjg&t=100s

This was also pretty useful