Bitcoin (BTC) lost 3.5% at the start of the week, a decline that was initially linked to the Japanese stock market index Nikkei. However, analysts note that the weakening of the Japanese Yen is actually a positive signal for risky assets and therefore Bitcoin has a closer relationship with the Japanese Yen, not the Nikkei. Shigeru Ishiba's remarks eased fears of interest rate hikes in the markets as it supported low borrowing costs.
According to experts, the Japanese currency is considered a “US recession trade” and its impact on Bitcoin should be carefully monitored going forward. Amundi Investment Solutions also stated that the movements of the yen are critical for Bitcoin, warning investors against potential risks that could have major market impacts.
