BTC experiences a decline in Asia as the Japanese yen plummets to its lowest value in 40 years, boosting the dollar.
By Omkar GodboleUpdated Jun 30, 2026, 4:20 a.m. Published Jun 30, 2026, 4:15 a.m. 2 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on Yen declines to a four-decade low. BTC faces pressure. (Roméo A./Unsplash)SummaryShow- Bitcoin dropped over 1% to below $60,000, remaining beneath its 200-week moving average as the currency markets reacted to the yen's decline.
- Strategy, the largest public bitcoin holder, intends to sell more than $1 billion in BTC as part of a $1.25 billion monetization initiative, diverging from Michael Saylor’s previous “never sell” philosophy.
- The Japanese yen has fallen to its weakest point against the dollar since 1986, largely due to contrasting interest rates between the U.S. and Japan, raising concerns about a chaotic unwinding of yen-funded carry trades that could impact stocks, bonds, and crypto.
Bitcoin BTC$59,391.18 has decreased by over 1% on Tuesday, as the Japanese yen hit a four-decade low against the U.S. dollar, resulting in increased volatility in the currency markets.
The leading cryptocurrency by market capitalization is trading below $60,000, remaining below the critical 200-week simple moving average.
On Monday, Strategy, the largest publicly traded holder of BTC, approved plans to repurchase up to $1 billion in its preferred and Class A common shares and is initiating a $1.25 billion "monetization program" to generate funds through bitcoin sales. This could involve selling over a billion dollars worth of BTC in a weak market, marking a significant shift from founder Michael Saylor’s long-standing principle of “never sell your bitcoin.”
However, this change may not provide much reassurance for the long term, as noted by some market analysts. Strategy’s preferred stock STRC, which generates yield, has seen a steep decline in recent weeks, undermining the firm’s primary funding source for BTC acquisitions.
"The can has been kicked down the road for a year or two," stated Jeff Dorman, CIO of Arca, on X.
"Cap structure trades will resurface in the future, as there is no real solution that satisfies all elements of the cap structure apart from BTC significantly appreciating. Additionally, Saylor may likely make more unforced errors (such as addressing the debt that initiated all of this — retiring $1.5 billion in debt at the cost of $40 billion in enterprise value loss)," he added.
Continued Decline of the Yen
Turning to the Japanese yen, it has reached a four-decade low of 162.40 per U.S. dollar, the lowest since October 1986 during Ronald Reagan’s presidency.
This decline has caused the U.S. dollar to strengthen against other currencies. The Dollar Index, which measures the dollar's value against major fiat currencies, has risen to 101.32 from nearly 101 on Monday.
The yen's depreciation is not a new phenomenon, but it has become more pronounced. Since 2021, the yen has depreciated approximately 57% against the dollar, primarily due to differing monetary policies: the U.S. Federal Reserve raised rates beyond 5%, while Japanese rates have remained near zero. The BOJ has only recently increased its policy rate to around 1%, still significantly lower than the U.S. rate of about 3.5%.
Market analysts view the yen's decline as indicative of Japan's fiscal difficulties manifesting in currency markets. With a debt-to-GDP ratio exceeding 220%, rapid interest rate hikes by the BOJ could trigger a fiscal crisis. Conversely, continued inaction could lead to further yen depreciation.
Currently, Japanese officials are relying on jawboning, or verbal interventions, to counteract the yen's decline, while the BOJ's hawkish stance is largely theoretical. Some analysts caution that decisive action from the BOJ could lead to a widespread unwinding of yen-funded carry trades, impacting stocks, bonds, and cryptocurrencies.
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