If Japan raises interest rates and the yen strengthens sharply, years of cheap yen-funded bullish bets on stocks, bonds and cryptocurrencies could unwind. Foreign investors who bought Japanese shares because of the weak yen may sell, while Japanese savers who moved money overseas as a hedge could repatriate those funds.
As these positions are closed, risk assets could come under selling pressure. Bitcoin suffered collateral damage in early August 2024, when a Bank of Japan rate increase pushed the yen higher and triggered a broad wave of risk aversion.
Bitcoin’s long-term bullish outlook remains intact, but the cryptocurrency still trades as a high-risk asset when traditional markets face sudden interest-rate and currency shocks. Investors should remain alert.
For analysis of today’s activity in altcoins and derivatives, see Crypto Markets Today. For a comprehensive list of events this week, see CoinDesk’s “Crypto Week Ahead.”
What’s Trending
North Korean hackers move tens of millions on Hyperliquid as Trump pushes to bring crypto platform onshore
Blockchain data reviewed by CoinDesk appears to show that wallets reportedly linked to North Korea’s Lazarus Group sold more than $30 million in bitcoin on the platform during the past three weeks alone.
CME’s share of $XRP futures jumps as token rallies 40% in one week
A growing share of $XRP futures trading is shifting toward CME as traders reduce leveraged positions across cryptocurrency exchanges.
Global bond yields reach multi-decade highs as Middle East turmoil revives inflation fears
Government bond yields rose across major markets, with borrowing costs in Japan and the U.K. reaching multi-decade highs and U.S. Treasury yields also surging.
Oil prices rise and stocks fall as Middle East violence intensifies uncertainty
Oil prices climbed 2% while global shares fell Tuesday. Brent crude gained 2% to $92.35 per barrel, and U.S. benchmark crude rose 2.5% to $87.84 per barrel.
Source: cryptonews.net