Bitcoin Dips Under Key Level as Crashing Yen Raises Global Market Concerns

Bitcoin News: Bitcoin edged lower in Asian trading as the Japanese yen plunged to a 40-year low, boosting the U.S. dollar and adding pressure to global risk assets.

BTC fell more than 1% on Tuesday, slipping under $60,000 as the yen’s sharp decline stirred volatility across foreign exchange markets. The cryptocurrency continues to trade below its 200-week simple moving average, a key long-term support level.

Meanwhile, Strategy—the largest publicly listed Bitcoin holder—approved plans to repurchase up to $1 billion of both its preferred shares and Class A stock. It also introduced a $1.25 billion “Bitcoin Monetization Program,” signaling potential BTC sales to raise capital. The move suggests the company may sell over $1 billion worth of Bitcoin into a fragile market, marking a notable shift from Michael Saylor’s long-held “never sell” approach.

Some analysts remain cautious. Strategy’s preferred stock, STRC, has declined sharply in recent weeks, weakening a major funding channel used to support continued Bitcoin accumulation.

Jeff Dorman, CIO of Arca, said the strategy may only postpone deeper structural challenges, noting that pressure within the company’s capital structure is likely to persist unless Bitcoin sees a strong rebound.

Yen Hits Multi-Decade Low

The Japanese yen dropped to 162.40 per dollar, its weakest level since 1986, further strengthening the greenback. The Dollar Index rose to 101.32 after hovering near 101 in the previous session.

The yen’s ongoing decline reflects a widening gap in monetary policy. Since 2021, it has lost roughly 57% against the dollar as the U.S. Federal Reserve raised interest rates sharply while Japan maintained near-zero borrowing costs. Although the Bank of Japan has recently lifted rates to around 1%, they remain significantly below U.S. levels near 3.5%.

Analysts view the yen’s weakness as a sign of Japan’s fiscal constraints. With debt exceeding 220% of GDP, aggressive rate hikes could destabilize the economy, while maintaining low rates continues to weigh on the currency.

For now, Japanese officials are relying on verbal intervention to slow the slide, while the Bank of Japan’s tightening stance remains largely limited. Some market participants warn that a stronger policy response could trigger a broad unwinding of yen-funded carry trades, potentially pressuring equities, bonds, and cryptocurrencies alike.