BTC-Yen Pair Hits Record High, Reflects Stress on Yen
Bitcoin’s ongoing rally indicates market perceptions, with sentiment being weakest for the Japanese yen among major fiat currencies.
The cryptocurrency hit a new record high of 7.9 million yen on bitFLYER, while the dollar-denominated price stood above $52,000, 32% short of the record high of $69,000 in November 2021.
The price differential reflects stress on the Japanese yen due to the Bank of Japan’s continued liquidity easing, resurgent inflation, and economic weakness.
The Japanese economy slipped into an economic recession at the end of last year, and the yen depreciated 13% and 7.5% against the dollar.
Bitcoin could continue to trade at a premium in the Japanese yen terms unless the Bank of Japan accelerates the planned exit from the ultra-easy monetary policy.
(With inputs from shikha Singh)
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