The Japanese Yen crisis is about broader economic turmoil in the global economy and indicates that the USDJPY is pretty much dead in the markets, but what about BTCJPY – how is Bitcoin performing in Japanese markets.
The past year saw the Japanese Yen losing -13% against the US Dollar, sparking a firestorm of attempts by the Japanese government to shore up its value.
But, this isn’t just about exchange rates; it’s a broader economic turmoil in the global economy and an indicator that the US Dollar to Yen is pretty much dead.
Meanwhile, Bitcoin beams in the spotlight, showcasing the cracks in the facade of fiat currencies like the Japanese Yen. In this article, we’ll show you that it’s more than just the Yen; several global fiat currencies are failing.
A new paradigm is forming, and Bitcoin is only one part of the picture. Post-Halving, with over 19.1 million of its coins mined and a fair number gone missing, Bitcoin’s scarcity paints it as an attractive bulwark against fiat’s inflation-prone nature.
(USDJPY)
US Dollar to Japanese Yen is Dead, Will BOJ Adopt Bitcoin?
Unlike its global counterparts, the Bank of Japan (BoJ) opted to keep interest rates low over the last five years, even maintaining them in the negative zone for an extended period.
This prolonged period of low-interest rates has transformed the Japanese yen into a hotbed for carry trade activities.
The Japanese Yen basically became a meme coin. Even Dogwifhat (WIF) had more street cred.
FX traders began to capitalize on borrowing at Japan’s low rates to invest in countries with higher returns, like the United States, exacerbating the yen’s decline.
With these developments the Japanese government reportedly spent nearly $35 billion to prop up the yen, marking its first intervention in the currency market since 2022.
Market levels for the USDJPY pair declined below the support level of 152.00, then swiftly recovered, forming a “V” pattern, indicating a strong buying response after a quick sell-off.
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The Japanese Yen Crisis is Not the Only Fiat In Trouble – Will BOJ Adopt Bitcoin?
(BTCJPY)
The yen is not the only currency facing headwinds; the US dollar, too, grapples with rising public debt, necessitating a low-interest-rate environment to mitigate government interest payments.
With BRICS (Brazil, Russia, India, China, South Africa, and UAE) turning on the USD, we could see more attention to alt-currencies like Bitcoin.
BTCJPY movements may inversely follow BTCUSD in the short term. But, Bitcoin’s monetary policies will influence its long-term trajectory, making it attractive to Japanese investors.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
