Analysts flag Japanese yen strength and rising US yields as near-term Bitcoin risks ahead of Fed and BoJ rate decisions.
Macro & Markets ·
Bitcoin trades near $78,000 after declining 2.5% over the past week, though it remains up 23% over the last month, as analysts flag a critical period ahead of Federal Reserve and Bank of Japan rate decisions. Rising US yields approaching 5% combined with yen strength pose the most immediate risks to crypto markets, as a stronger yen could accelerate unwinding of yen-funded carry trades and force investors to cut risk across both stocks and crypto simultaneously. Spot Bitcoin ETF funds recorded their first negative week since mid-August, shedding $462.73 million across four trading days, while Ethereum ETFs continued gaining with a $216.41 million inflow on Friday.