Yen Surge, Soaring Bond Yields Could Threaten Bitcoin as BOJ Weighs Policy Shift
The Bank of Japan could pivot as the yen strengthens, threatening crypto gains with tighter policy.
A rallying yen and the highest Japanese bond yields in 30 years are sending warning signals across global markets, and Bitcoin may not be spared.
This week, Japan’s 30-year bond yield jumped to 2.345%, its highest level since 1994, while the yen rallied to around 153 against the U.S. dollar.
Goldman Sachs analysts led by former Bank of Japan (BOJ) chief economist Akira Otani believe that the bank may be nearing a policy pivot amid the yen’s rally.
If the yen strengthens further toward 130/USD, the central bank could pause rate hikes and slash its inflation outlook for 2026. A weaker yen past 160, meanwhile, could force tighter policy, the analysts said in a Monday report.
