Key Points
- The weakening Japanese Yen could potentially boost Bitcoin and the broader crypto market.
- Bitcoin witnessed a slight appreciation despite bearish sentiment, eyeing a resistance level of $64K.
The Japanese Yen’s decreasing strength might serve as a catalyst to stimulate liquidity and enhance Bitcoin (BTC) along with the overall cryptocurrency market. This viewpoint was put forth by Arthur Hayes, BitMEX exchange’s founder, amidst bearish signals.
Historic Low for Yen Against USD
On 26th June, the Yen plummeted to its lowest point against the U.S. dollar in almost 38 years. This significant drop sparked discussions about potential interventions by authorities in the currency markets.
The Federal Reserve’s decision to maintain high interest rates is believed to be a contributing factor to the Yen’s poor performance.
The Bitcoin Therapist echoed Hayes’ views and speculated whether Japan was printing Yen to covertly purchase Bitcoin.
Impact on Bitcoin
Hayes suggests that a weaker Yen could instigate competitive currency actions among major economies, potentially leading to currency devaluations and increased liquidity injections. This could benefit Bitcoin, which is often seen as a hedge against fiat currency devaluation.
In such a scenario, Hayes expects Bitcoin to perform well, demonstrating its resilience amidst global fiat currency instability.
As the Yen faced bearish pressure, BTC appreciated by 0.56%, reaching a trading price of $62,130.05. Despite strong bearish sentiment indicated by the Relative Strength Index (RSI), a surpassing of the resistance level at $64,817 could signal a potential shift into a bullish phase.