Will the rising Japanese yen affect $BTC and altcoin prices?
Yen Surges as a Safe-Haven Asset
The Japanese yen is gaining significant strength against the U.S. dollar, with the USD/JPY rate falling to 139.92—its lowest point since September 2024 and 11.5% down from this year’s high. This rally is part of a broader trend, with other major currencies like the euro, pound, and Swiss franc also gaining as the U.S. Dollar Index drops to $98, its weakest since April 2022.
Market Shake-Up: Equities and Crypto React
This yen strength is already making waves. According to BitMEX co-founder Arthur Hayes, leveraged traders are being forced to unwind positions in U.S. stocks and bonds, pushing bond yields higher. In turn, major U.S. indices like the Nasdaq 100, S&P 500, and Dow Jones have slid into correction territory.
Adding pressure, Japanese investors—holders of $1.1 trillion in U.S. debt—have sold over $20 billion in international bonds, primarily U.S. Treasuries, as they shift focus back home amid rising Japanese bond yields (now at 1.30%).
Bitcoin's Role as a Safe-Haven Grows
As traditional markets wobble, Bitcoin is showing resilience. Hayes suggests that rising bond yields could prompt the Federal Reserve to resume money printing, which may favor assets like Bitcoin. Evidence of this trend? Over $381 million flowed into spot Bitcoin ETFs on Monday, following $107 million the previous Friday—mirroring a 1,000-point drop in the Dow Jones.
Bitcoin’s limited drop of under 3% year-to-date, compared to double-digit losses in U.S. stocks, reinforces its emerging status as a digital safe haven.
Altcoins Could Ride the Wave
If Bitcoin continues to gain safe-haven appeal, altcoins may benefit too. Historically, tokens like Ethereum (ETH), Solana (SOL), and Pepe (PEPE) tend to surge when Bitcoin leads the market. With Bitcoin holding strong and institutional inflows rising, altcoin prices could see upward momentum in the wake of a shifting global financial landscape.
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