Bitcoin News: Bitcoin slipped during Asian trading hours as the Japanese yen tumbled to a 40-year low, pushing the U.S. dollar higher and weighing on risk assets.
BTC fell more than 1% on Tuesday, dropping below $60,000 as the yen weakened sharply against the dollar, sparking renewed volatility in currency markets.
The cryptocurrency remains below its key 200-week simple moving average, a long-term level closely tracked by traders.
At the same time, Strategy—the largest publicly listed Bitcoin holder—announced plans to repurchase up to $1 billion each of its preferred shares and Class A stock. The firm also introduced a $1.25 billion “Bitcoin Monetization Program,” opening the door to potential BTC sales to raise capital. The move suggests the company could sell over $1 billion worth of Bitcoin into a soft market, marking a clear shift from founder Michael Saylor’s long-standing “never sell” stance.
Some analysts remain skeptical about the impact of this pivot. Strategy’s preferred stock, STRC, has fallen sharply in recent weeks, weakening a key funding channel used to support ongoing Bitcoin purchases.
Jeff Dorman, CIO of Arca, noted that the move may only delay deeper structural challenges, arguing that capital structure pressures are likely to return unless Bitcoin stages a strong rally.
Yen Slide Deepens
The Japanese yen dropped to 162.40 per U.S. dollar, its weakest level since 1986, further strengthening the dollar across global markets. The Dollar Index climbed to 101.32 after hovering near 101 a day earlier.
The yen’s prolonged decline has been driven by policy divergence. Since 2021, the currency has lost roughly 57% against the dollar as the U.S. Federal Reserve raised interest rates well above those in Japan. Although the Bank of Japan has recently lifted rates to around 1%, they remain far below U.S. levels near 3.5%.
Market participants see the yen’s weakness as a reflection of Japan’s fiscal constraints. With debt exceeding 220% of GDP, aggressive rate hikes could destabilize public finances, while maintaining low rates continues to pressure the currency.
For now, Japanese officials are relying on verbal intervention to slow the slide, while the Bank of Japan’s tightening stance remains limited. Some analysts warn that any decisive policy shift could trigger a large-scale unwinding of yen-funded carry trades, potentially adding pressure to global markets, including crypto.
