The United States joined Japan’s effort to support the yen after preliminary central-bank data indicated Tokyo may have deployed almost $96 billion over two days, putting Bitcoin traders on alert for a possible unwind of positions financed with cheap Japanese capital. On Aug. 3, Japan’s Ministry of Finance confirmed that it purchased yen in coordination […]
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The Bank of Japan raised its benchmark interest rate to 1% on June 16, the highest level the country has seen since September 1995 and the furthest point yet in a normalization campaign that has slowly dismantled three decades of near-free money. Going into the decision, the track record pointed one way: every one of […]
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Crypto pundit UnknowDLT has revealed that Japan has provided regulatory clarity for XRP, classifying it as a financial instrument. This comes amid predictions about the altcoin’s trajectory, including a possible rally to $10. Japan Classifies XRP Along With Stocks And Bonds In an X post, the pundit noted that Japan has reclassified crypto assets as financial instruments, meaning that XRP now has the same legal status as a stock or bond. He added that the country with the strictest crypto regulations in the world has just put XRP on par with traditional financial assets. Related Reading: Massive XRP Adoption Trend Paints The Most Bullish Picture Yet Amid this development, XRP pundit XRP Update noted that Japan was one of Ripple’s earliest strongholds. The pundit noted that, through its partnership with SBI, the company launched On-Demand Liquidity (ODL), using XRP as a bridge asset to enable real-time cross-border payments and eliminate pre-funding. Since then, XRP has continued to witness massive adoption in Japan. Crypto pundit Xaif recently noted that Japan is tokenizing payments on the XRP Ledger. Specifically, SBI and Tobu Top Tours have partnered to issue prepaid payment tokens on the XRP Ledger, which are tied to the 30 trillion yen market. Furthermore, Japanese crypto firm Rakuten Wallet has listed XRP for its 44 million users. These users will be able to buy XRP with loyalty points and can spend them across the country. This is part of an integration that connects XRP to up to 5 million merchants in the country. As such, XRP continues to see massive adoption in the country amid the token’s reclassification as a financial instrument. A Rally To $13 Still In Play For XRP Crypto analyst Egrag Crypto has stated that an XRP rally to between $9 and $13 is still in play. He noted that market participants are focused on the descending triangle but are missing the bigger picture. He acknowledged that after 14 months of accumulation, the token formed this descending triangle and broke down as it statistically should. Related Reading: XRP Is At A Critical Decision Point, But Can Price Still Rally To $2? However, Egrag Crypto said that this breakdown is not a trend failure but rather a liquidity sweep inside a macro uptrend. He added that the real structure is the Bifrost Bridge and that as long as XRP is rising in this macro channel, then the trend is intact. Also, the structure is bullish while the move is unfinished, signaling a further rally to the upside. The analyst stated that triangles are short-term patterns and that channels define cycles. As such, Egrag Crypto is confident that XRP will still rally to as high as $13, with XRP still inside this macro channel. He added that a long accumulation translates to an explosive expansion. At the time of writing, the XRP price is trading at around $1.45, up in the last 24 hours, according to data from CoinMarketCap. Featured image from Adobe Stock, chart from Tradingview.com
Bitcoin sometimes sells off hard on days with no crypto headlines. A recurring driver sits outside crypto: a yen-funded carry unwind that forces cross-asset deleveraging, then transmits into BTC through thinner liquidity, wider spreads, and fast position reduction in derivatives. Here's the core mechanism in one line: if USD/JPY moves fast enough to trigger margin […]
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Last week’s downturn was driven by yen carry trades and macro leverage, highlighting how deeply digital assets are now tied to traditional markets, panelists at Consensus Hong Kong 2026 said.
Japan spent decades as the world’s best destination for the world's easiest funding trade. You could borrow yen at very low rates, buy almost anything with a higher yield, hedge just enough to feel responsible, and assume the Bank of Japan would keep volatility contained. Late January 2026 is what it looks like when that […]
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Arthur Hayes says Bitcoin’s next leg higher is less about crypto-specific catalysts and more about whether US policymakers are forced to respond to mounting stress in Japan’s currency and government bond markets. stress he argues will ultimately translate into fresh dollar liquidity. In his latest essay, “Woomph,” published Wednesday, Hayes frames the recent yen weakness and a selloff in long-dated Japanese government bonds (JGBs) as the kind of systemic “alarm sound” that precedes official intervention. “The financial markets went woomph as the yen weakened and JGB prices collapsed,” he wrote. “Therefore, analyzing the fragility that the yen and JGB injects into global markets at this juncture is extremely important. Will a meltdown of the yen and JGB markets cause some sort of money printing by the BOJ or the Fed? The answer is yes, and this essay will explain the mechanics of the said intervention that was foreshadowed last Friday.” Related Reading: Bitcoin Social Interest Fades As Retail Chases Gold, Silver Hype Hayes lays out a step-by-step scenario in which the New York Fed expands bank reserves, sells dollars for yen, and then deploys that yen into JGB purchases, effectively stabilizing both USD/JPY and Japan’s long-end yields while warehousing FX and duration risk on the Fed’s balance sheet. In his telling, the signature will be visible in a specific line item: “Foreign Currency Denominated Assets” on the Fed’s weekly H.4.1 balance sheet release. If that figure grows rapidly, Hayes argues it would suggest the Fed has begun accumulating foreign-currency assets, potentially JGBs, consistent with the intervention pathway he describes. The policy motive, he adds, is not charity. Hayes points to Japan’s large stock of foreign assets and its role as a major holder of US Treasuries, arguing that rising JGB yields could pull Japanese capital home and pressure US borrowing costs. Japanese policy debates over yen weakness and the BOJ’s tightening path, and the BOJ itself held its policy rate at 0.75% on January 23. Hayes centers on what he calls a deliberately telegraphed signal: market chatter that US officials had “checked prices” with Wall Street dealers, language traders often interpret as a precursor to FX intervention. The Financial Times reported that a US “rate check” helped drive a sharp yen move and stoked speculation about coordinated action. Related Reading: Expert Who Nailed The Bitcoin Top Now Says Buy At These Levels He also suggests the BOJ’s decision to stand pat, despite what he characterizes as a market demanding a stronger defense of the yen and the bond market, increased the odds of US help. Japan’s political backdrop matters here too: Sanae Takaichi dissolved parliament and set a snap election for February 8, a move widely covered in international media in recent days. Why Hayes Ties It Back To Bitcoin For Hayes, the Japan stress story is ultimately a liquidity story and he argues Bitcoin remains tethered to the direction of the Fed’s balance sheet. “This discussion of Japanese financial markets is important because for Bitcoin to exit its sideways funk it needs a healthy dose of money printing,” he wrote. “What I will present is a theory which the actual flow of money through the corroded veins of the global monetary system doesn’t support yet. As time progresses, I will monitor the changes in certain line items on the Fed’s balance sheet in order to validate my hypothesis.” In the essay, he also flags a shorter-term complication: a rapidly strengthening yen has historically aligned with risk-off positioning as leveraged investors unwind yen-funded trades, dynamics he says can drag on Bitcoin before any liquidity impulse arrives. Hayes’ tactical conclusion is to stay patient until the balance-sheet evidence arrives. He says he exited levered Bitcoin proxies, including Strategy (MSTR) and Japan-listed Metaplanet, ahead of the yen move, and would consider re-entering if the “Foreign Currency Denominated Assets” line item starts rising sharply. Moreover, he writes that his fund Maelstrom is continuing to add to Zcash (ZEC), while keeping other “quality DeFi” positions unchanged and only adding further if intervention-driven balance sheet growth becomes visible. At press time, Bitcoin traded at $89,137. Featured image created with DALL.E, chart from TradingView.com
The 90-day correlation between bitcoin and JPY has risen to a record high of over 0.85.
The digital yen stablecoin aims to plug Japan into onchain finance and cross-border tokenized asset flows under the country's new FSA regime.
Unlike most Asian currencies, the yen moves freely across borders, making it the perfect vehicle for an on-chain carry trade that blends Japan’s easy money with DeFi’s appetite for yield.
With the yen freely convertible and backed by Japan’s deep government bond market, JPYC’s launch stands apart from the region’s onshore-only experiments in Korea, Taiwan, and beyond.
The hardening of Japanese government bond yields could spillover into other sovereign bond markets, capping upside in risk assets, including BTC.
The yen weakened as Sanae said that her government would lead fiscal and monetary policy setting.
Approval of JPYC's yen-pegged token could happen as early as the next few months.
The yen is no longer the most attractive funding currency, and the currency's strength may not necessarily lead to broad-based risk aversion, one expert said.
Traders are ramping up expectations for Fed rate cuts in 2026, which supports the bull case in BTC; however, the bond yield differential suggests JPY strength ahead.
Analysts suggest bitcoin's recent price action could signal a break in the downtrend, with potential for further gains.
Goldman Sachs recommends the yen as a hedge against U.S. recession risks, citing its historical strength in risk-off environments.
BTC hits three-month as Nasdaq futures point to continued risk aversion in stocks and the anti-risk Japanese yen strengthens against the U.S. dollar.
BTC's rally has stalled since Friday for several reasons, including waning demand at record prices.The AUD/JPY pair has turned lower, hinting at a broad-based risk aversion amid the talk of a BOJ rate hike in December.A similar set-up in the yen rocked the global markets, including cryptocurrencies, in late July-early August this year.
A renowned Japanese cryptocurrency businessman responded to his fellow Japanese who see Bitcoin as a currency “not backed by anything of value”. Related Reading: Bitcoin Gains VanEck’s Official Support As Strategic Reserve Crypto entrepreneur Koji Higashi argued that these people who still have a pessimistic view about Bitcoin fail to realize the Japanese yen is […]
Bitcoin‘s recent price rebound has captured the attention of the general crypto sector, which has put retail investors, especially new ones, on a high profitability as market conditions continue to display noticeable improvements. Bitcoin Profitability Rises Among New Investors In recent developments, new Bitcoin investors have witnessed a notable increase in profitability, boosting the outlook […]
Once again making news, Metaplanet Inc., often known as “Asia’s MicroStrategy,” raised 10 billion yen (about $68 million) through a recent stock sale. The goal of this significant investment is to support its aggressive Bitcoin acquisition strategy. Similar to the tactics of well-known companies like MicroStrategy, the move comes as the company keeps positioning itself […]