Bitcoin and leading cryptocurrencies are experiencing weaker performance in yen compared to their strength in USD due to a significant rise in the yen.
By Omkar GodboleUpdated Jul 10, 2026, 4:51 a.m. Published Jul 10, 2026, 4:34 a.m. 2 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on Yen surges amid intervention concerns. (Jason Leung/Pixabay)SummaryShow- Bitcoin and other significant cryptocurrencies are showing weaker performance in yen compared to their USD counterparts due to the yen's rapid increase.
- Increased wholesale inflation and expectations of quicker rate hikes from the Bank of Japan have led to speculation regarding potential interventions to stabilize the yen.
- The Japanese government is encouraging the GPIF pension fund to allocate a greater portion of its ¥277 trillion assets into domestic markets, which could impact global stocks, bonds, and currency values.
Bitcoin BTC$63,986.12, along with XRP (XRP) and other prominent cryptocurrencies, are performing well globally, albeit less so in Tokyo, which is attributed to the yen's significant rise.
The yen has strengthened to 161.55 per USD, up from 162.42 earlier today. Consequently, the BTC/JPY on BitFlyer in Tokyo has only increased by 0.68%, while the BTC/USD on Nasdaq has grown by 1.15%. This trend is consistent for XRP/JPY, SOL/JPY, ETH/JPY, and other JPY trading pairs, which are rising but trailing their USD-denominated equivalents.
The yen's appreciation follows renewed fears of potential intervention by the Bank of Japan (BOJ) after the yen recently hit a 40-year low. The BOJ has a history of intervening by selling US dollars and purchasing yen to support its currency, though such actions have often resulted in only temporary stabilization. Persistent fiscal challenges in Japan and relatively higher interest rates in the U.S. have led traders to resume selling yen shortly after such interventions.
This morning, Japan's producer price index for June was reported at 7.1%, marking the fastest annual growth since March 2023. This surge in wholesale prices has bolstered expectations for additional rate hikes by the BOJ. A former BOJ official noted on Thursday that the central bank might accelerate rate increases, potentially exceeding 2%.
It is important to note that Bitcoin and the yen have exhibited a notably strong positive correlation, often moving together against the U.S. dollar. Should this correlation persist, increases in the yen may eventually yield positive outcomes for Bitcoin overall, despite the relative underperformance of BTC/JPY and other crypto/JPY pairs.
The GPIF Concern
The Government Pension Investment Fund (GPIF) of Japan, which manages approximately ¥277 trillion ($1.87 trillion) in assets, is the largest retirement fund globally. It has significant investments in international stocks and bonds.
Currently, the Japanese government is advocating for the GPIF and other pension funds to invest more heavily in domestic assets. Such a strategic shift could lead to volatility in international financial markets.
"At the end of December, the fund, one of the world's largest pension pools, held 293.4 trillion yen, or around $1.81 trillion, in assets, maintaining balanced allocations across domestic and foreign equities and bonds," reported analysts at InvestingLive in a market update.
"Given its size, even minor changes in GPIF's investment strategy are closely monitored in global bond, currency, and equity markets, meaning any concrete moves to favor domestic assets would attract considerable attention beyond Japan," the analysts added.
Japan’s Finance Minister Satsuki Katayama stated on Friday that the government aims to find ways to encourage the GPIF to increase its holdings of Japanese financial instruments. This initiative comes as Japanese government bond yields are at 30-year highs.
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