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Bitcoin holds near $78,500 as a stronger yen raises risk-asset pressure

Japanese yen strength, after it hit 152.89 per dollar, can raise the cost of yen carry trades that have been used to fund overseas risk positions, including crypto.

Reported · Written up by our desk · Market Structure

Bitcoin was trading near $78,500 on Sept. 8, staying within its recent $77,200 to $82,100 range as the yen hit its strongest level since February and investors trimmed bets on Japan’s currency.

CryptoSlate reports the yen reached 152.89 per dollar during Asian trading before easing to 154.14, with market participants watching the Bank of Japan’s Sept. 17 to 18 meeting as a potential catalyst for renewed currency pressure.

A stronger yen can squeeze investors who borrowed yen to buy foreign assets, potentially leading to portfolio sales, and it can also worsen funding conditions for carry trades by increasing the cost of repaying yen liabilities relative to foreign holdings.

The article points to support from US spot Bitcoin ETF inflows, including $730.8 million net inflows on Sept. 3 and $174.6 million on Sept. 4, but notes that futures-led rallies and elevated exchange inventory could face a tougher test if investors reduce broader risk and demand weakens.

Latest closeBitcoin $79,310.40 ▲1.1%

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