Bitcoin and the Nasdaq are facing significant challenges as the yen rallies, with Bitcoin plummeting 2000% this month following a 2108% drop in February. The strengthening of the yen, propelled by increasing Japanese government bond yields, could diminish, possibly alleviating the strains on the Bitcoin and Nasdaq markets. Bitcoin is currently priced around $147,314.7 and has seen a decrease of 2145.50% this month, following a 22.69% fall in February. On February 28, the price momentarily reached $79,000, indicating ongoing fluctuations in the cryptocurrency market. At the same time, the Nasdaq is facing challenges, mirroring wider apprehensions among investors. The recent decline in the market coincides with a notable increase in the value of the Japanese yen, leading to speculation about a potential connection. The recent strengthening of the yen is attributed to a notable increase in Japanese government bond (JGB) yields, hitting their highest point in more than 16 years. This rise in yields is largely due to anticipations of additional interest rate increases by the Bank of Japan (BoJ) and a sell-off in the global bond market. The yield on the 10-year Japanese Government Bond (JGB) has exceeded 1.5%, and the yield on the 145.503-year bond has risen above 2.5%. This trend suggests increasing inflationary pressures and a change in Japan’s monetary policy. Will this provide some relief for Bitcoin and the Nasdaq? Despite the yen experiencing significant strength recently, there are opinions that its upward trend might be hitting a limit. According to data from the Commodity Futures Trading Commission (CFTC), speculative positions in the yen reached all-time highs last week.
Bitcoin and Nasdaq are seeking stability while the rally of the yen encounters obstacles.
