Yen Surge and Rising Bond Yields May Impact Bitcoin
The Bank of Japan (BOJ) faces pressures as the yen strengthens and Japanese bond yields rise to levels not seen in 30 years. With the 30-year bond yield now at 2.345%, Goldman Sachs analysts suggest that the BOJ may consider a policy shift that could impact risk assets like Bitcoin. A stronger yen may lead the BOJ to adjust its monetary policy, possibly pausing rate hikes if the yen strengthens towards 130 against the dollar, creating concerns over capital rotation away from speculative assets. Bitcoin's recent stability, trading near $85,600, could be jeopardized unless the BOJ maintains its loose policy framework. The shift could also signal broader changes in global investment trends. While some analysts predict significant volatility for Bitcoin, others believe its supply cap makes it robust against such macroeconomic changes. The crypto market's response to new developments in Japan's monetary policy is being closely monitored, especially amid rising inflation expectations in the U.S.
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