If Japan does increase rates and the yen rises quickly, cheap yen-funded bullish bets in stocks, bonds and even cryptocurrencies taken over the years can unwind. Foreigners who bought Japanese stocks on the back of a weak yen may sell. Japanese savers who sent money overseas as a hedge may bring it home. When those positions close, risk assets could be sold. Bitcoin suffered collateral damage in early August 2024, when a Bank of Japan rate increase drove the yen higher and spurred a wave of risk aversion.
So while bitcoin’s long-term bull case looks as solid as ever, it still trades like a high-risk asset when traditional markets get squeezed by rate and currency shocks. Stay alert!
Read more: 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 are moving tens of millions on Hyperliquid as Trump pushes to onshore the crypto platform (CoinDesk): Blockchain data reviewed by CoinDesk appears to show wallets said to be tied to North Korea’s Lazarus Group sold more than $30 million in bitcoin on the platform in the last three weeks alone.
- CME’s share of $XRP futures jumps as token rallies 40% in a week (CoinDesk): A growing share of $XRP futures trading is moving toward CME even as traders cut leveraged positions across crypto exchanges.
- Global bond yields soar to multi-decade highs as Middle East turmoil reignites inflation fears (CNBC): Government bond yields jumped across major markets, with borrowing costs in Japan and the U.K. touching multi-decade highs, and U.S. Treasury yields surging.
- Oil prices rise and stocks slide as Middle East violence flares, adding to uncertainty (AP): Oil prices jumped 2% and world shares fell Tuesday. Brent crude gained 2% to $92.35 per barrel. U.S. benchmark crude advanced 2.5% to $87.84 per barrel.
