Bitcoin continues to hover around $64K, with the Japanese Yen’s decline potentially indicating ‘currency turmoil,’ says analyst.

In an interview, Noelle Acheson highlighted the potential ripple effects of the yen’s recent sharp decline against the U.S. dollar, suggesting that other fiat currencies might face similar volatility. With U.S. interest rate cuts appearing unlikely due to persistent inflation, investors may turn to alternative assets like gold and bitcoin.

The yen’s significant drop against the U.S. dollar, reaching its lowest level since 1990, prompted speculation among traditional market observers about potential repercussions. Despite the yen’s turbulence, cryptocurrency markets remained relatively stable, with bitcoin trading within a narrow range around $64,000.

While the yen’s devaluation hasn’t yet impacted crypto markets, analysts anticipate potential shifts if the Bank of Japan intervenes to stabilize the currency. Intervention could involve selling U.S. dollar assets to bolster the yen, potentially weakening the dollar and boosting crypto prices.

Additionally, U.S. policymakers injecting liquidity into markets could support risk assets like cryptocurrencies. Looking ahead, Acheson predicts that the currency turmoil may extend beyond the yen, especially with rising U.S. yields and inflationary pressures. This volatility could drive increased interest in hedging assets such as gold and bitcoin among corporations and even sovereign entities.