Bitcoin Falls Below $60,000 as Japanese Yen Hits 40-Year Low Against US Dollar

Bitcoin slipped more than 1% and traded below the key $60,000 level as the Japanese yen weakened to its lowest point against the US dollar since 1986.

BTC also remained below its important 200-week moving average, adding pressure to already cautious market sentiment.

The Japanese yen dropped to around 162.40 per dollar, extending a long decline caused by the widening gap between US and Japanese interest rates. While the US Federal Reserve previously pushed rates above 5%, the Bank of Japan only recently raised rates to nearly 1%, keeping the yen weak and boosting the US dollar.

Strategy’s Bitcoin Plans Add Market Concerns

Investor attention also turned to Strategy after the company approved plans to buy back up to $1 billion of preferred and Class A shares while launching a $1.25 billion monetization program tied to Bitcoin sales.

Analysts Warn About Carry Trade Risks

Market analysts say the yen’s weakness could eventually trigger an unwinding of yen-funded carry trades, where investors borrow cheaply in yen to buy higher-risk assets such as stocks and cryptocurrencies. A sudden policy shift by the Bank of Japan could increase volatility across global markets, including Bitcoin.