JC
December 31, 2025

What Could Cause the Reverse Carry Trade to Unwind?

A viewer asked: What scenario could make the reverse carry trade fall to boost XRP? This recording is Jake Claver's answer, in full and unedited.

What this recording covers

Claver explains the macroeconomic sequence that could trigger an unwinding of the global reverse carry trade. He focuses on international energy markets as the primary catalyst, explaining that geopolitical tensions in oil-producing regions or Eastern Europe could sharply escalate global energy costs. Because Japan relies heavily on imported energy resources, substantial increases in energy expenses would generate severe inflationary pressure within its domestic economy. Under such conditions, Claver explains that the Bank of Japan would be compelled to respond by raising benchmark interest rates aggressively to counter import-driven inflation. This monetary policy shift would disrupt existing cross-border financing structures that depend on low Japanese borrowing rates, initiating a broader unwinding across international financial markets.

Where this fits

This page hosts a recorded video and a short summary of what it covers. It is general information, not investment, tax, or legal advice, and not a recommendation to buy or sell any asset or to form any entity. Rules change and older recordings may describe a position that has since moved. Speak to a qualified professional before acting.

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