Bitcoin News

Story: Japan’s Yen Crisis Puts $64K Bitcoin at Risk as BOJ Rate Hike Looms

By Sakamoto Nashi

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Bond Yields at Levels Not Seen Since 1996. The bond market made things worse. Japan's 10-year yield hit 2.945%, the highest reading since 1996.

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The Carry Trade Risk Hanging Over Bitcoin. Bitcoin sat at roughly $64,136, up a little on the day, when this story went to print.

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What Comes Next for Markets. Two events are coming that'll probably clarify a lot.

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Japan is bleeding from three wounds at once. The yen, the bond market, and the country's debt math are all breaking down together — and Bitcoin traders are watching every tick.

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The Ministry of Finance moved first on July 30, selling dollars when USD/JPY crept toward its weakest level in decades. The U.S.

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Growth isn't helping either. GDP expanded at an annualized 1.1% in the second quarter, missing forecasts. Household spending fell for the first time in eight quarters.

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And the reserve situation is getting tighter. In June, Japan sold $26.4 billion in U.S. Treasuries — the single largest reduction by any country that month.

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More context: Goldman Sachs Cuts September Rate Hike Odds as Bitcoin Holds $63,500

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The yen is probably the world's most popular funding currency for carry trades. The strategy is pretty straightforward: borrow cheap in yen, deploy into higher-yielding assets —…

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That's the risk sitting under Bitcoin right now. Analysts are watching for further BOJ rate hikes. If the central bank moves to close the interest rate gap with the U.S.

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Two events are coming that'll probably clarify a lot. Official intervention totals get released by the end of August — those numbers will show exactly how much firepower Tokyo…

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Market participants aren't exactly relaxed. The July intervention cost $88 billion and lasted maybe a week in terms of real impact. Japan's reserves are finite.

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More context: Fed Pumps $17 Billion Into Markets and Bitcoin Traders Eye the $65K Level

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It's a bad combination. And the crypto market, which tends to shrug off geopolitical noise but reacts sharply to liquidity shocks, can't ignore what's building in Japan.

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Bitcoin at $64,136. BOJ meeting in September. Official intervention data due by end of August.

The Currency Analytics

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