Global Focus on BOJ’s June Policy Meeting
All eyes are on the upcoming Bank of Japan (BOJ) policy meeting on June 16–17, as speculation mounts that the central bank may delay quantitative tightening (QT) and possibly reintroduce quantitative easing (QE) measures. This decision could have significant implications for global markets—especially Bitcoin and other risk assets.
A shift toward more accommodative monetary policy by the BOJ could trigger renewed capital flows into crypto.
Japan’s Mixed Economic Outlook
Recent data from Japan presents a complex economic backdrop. In May, wholesale inflation slowed, with the Corporate Goods Price Index (CGPI) rising just 3.2% year-over-year—its weakest pace since September. This decline was largely due to lower import costs for raw materials.
However, food and beverage prices continue to rise, showing that companies are still passing on input costs to consumers despite subdued domestic demand.
“As wholesale inflation slows, consumer prices will also come under downward pressure with a lag,” noted a senior economist.
Bond Market Crisis Adds Pressure
Japan is also facing a deepening bond market crisis, with yields on long-term government bonds reaching record highs. Liquidity concerns are rising, drawing comparisons to the 2008 financial crisis.
“The BOJ may have missed its chance to raise rates before inflation cools further,” say economists.
Bitcoin as a Safe Haven in Japan
In contrast to traditional markets, Japan’s crypto ecosystem is expanding, with 32 registered crypto exchanges as of April. This growth reflects a shift in investor sentiment amid financial uncertainty.
“If the BOJ restarts QE, risk assets—including Bitcoin—are going to fly,” says a top crypto executive.
A weaker yen—often a result of loose monetary policy or financial instability—can drive investors toward Bitcoin as a hedge. In this scenario, BTC may serve as a refuge against currency devaluation and systemic risk.
Conclusion: Will the Yen’s Decline Fuel Bitcoin?
With the yen weakening and uncertainty looming over monetary policy, Bitcoin could benefit as a global safe-haven asset. The BOJ’s next move may very well shape the next chapter of crypto market momentum—not just in Japan, but worldwide.