[Analysis] "Bitcoin shakes off yen carry-trade liquidation concerns... but another risk emerges"

An analysis said that another risk could act on Bitcoin (BTC), which withstood concerns about yen carry-trade liquidations that arose amid expectations that the Bank of Japan (BOJ) will raise its policy rate at this month's Monetary Policy Meeting.

On the 7th (Korean time), cryptocurrency-focused outlet CoinDesk reported, "Bitcoin has shaken off yen carry concerns that could arise from a sharp rise in the yen's value, but global bond yields are once again acting as a risk factor for Bitcoin."

CoinDesk said that the deterioration in investor sentiment toward cryptocurrencies caused by yen strength has largely eased. The outlet explained, "Japanese interest rates are expected to be raised to 0.75%, but this has already been priced in by the market," and added, "Japanese government bond yields are already at their highest level in decades." It went on, "Currently, the 10-year Japanese government bond yield is 1.95%, and even after the anticipated rate increase it remains low compared with the U.S., which is 3.75%," adding, "There is little likelihood of a sudden surge in the yen or an unwinding of carry trades."

However, it explained that global bond yields resulting from a rise in Japanese rates still act as a burden on Bitcoin. The outlet emphasized, "If global bond yields rise, they can have a negative impact on risk assets such as Bitcoin," and "Japan's rate increase could push up U.S. Treasury yields, which in turn could dampen demand for risk assets."