Bitcoin News: Bitcoin declined in Asian trading as the Japanese yen plunged to a four-decade low, driving a broader rally in the U.S. dollar and pressuring risk assets.
BTC fell over 1% on Tuesday, slipping below the $60,000 level as sharp yen weakness fueled volatility across currency markets. The cryptocurrency continues to trade beneath its 200-week simple moving average, a key long-term support level.
Meanwhile, Strategy—the largest publicly traded holder of Bitcoin—approved plans to repurchase up to $1 billion of both its preferred and Class A shares. The company also launched a $1.25 billion “Bitcoin Monetization Program,” signaling potential BTC sales to raise capital. This suggests Strategy could sell more than $1 billion worth of Bitcoin into an already fragile market, marking a clear break from Michael Saylor’s long-standing “never sell” narrative.
Some analysts question whether the move meaningfully addresses deeper issues. Strategy’s preferred stock, STRC, has dropped sharply in recent weeks, weakening a major funding channel for continued Bitcoin accumulation.
Jeff Dorman, CIO of Arca, said the decision may simply postpone structural pressures, noting that challenges tied to the company’s capital structure are likely to resurface unless Bitcoin sees a significant rally.
Yen Weakness Accelerates
The Japanese yen fell to 162.40 per dollar, its lowest level since 1986, further strengthening the greenback across global markets. The Dollar Index rose to 101.32 after hovering near 101 in the prior session.
The yen’s sustained decline reflects widening policy divergence. Since 2021, it has weakened roughly 57% against the dollar as the U.S. Federal Reserve raised rates sharply while Japan maintained ultra-low borrowing costs. Although the Bank of Japan has recently lifted rates to around 1%, they remain well below U.S. levels near 3.5%.
Analysts view the yen’s slide as a sign of Japan’s fiscal constraints. With debt exceeding 220% of GDP, aggressive rate hikes risk destabilizing public finances, while maintaining low rates continues to weigh on the currency.
For now, Japanese officials are relying on verbal warnings to slow the decline, while the Bank of Japan’s tightening stance remains limited. Some market participants warn that any decisive shift could trigger a rapid unwind of yen-funded carry trades, potentially adding pressure across equities, bonds, and cryptocurrencies.
