Japanese Yen Weakens: Potential Rise in Bitcoin Reserves Expected
The Federal Reserve's sustained high interest rates have severely weakened the Japanese Yen, positioning it among the weakest global currencies.
As Japan’s fiat currency struggles, more private firms, inspired by Metaplanet, may adopt a robust Bitcoin strategy by holding BTC in their reserves.
Today, the Japanese Yen dropped to ¥160.8 against the USD, its lowest since 1986. Surprisingly, currencies like the Turkish Lira, Argentine Peso, and Brazilian Real are proving more resilient.
Dear @Bank_of_Japan_e congratulations, your toilet paper of a currency is now the worst performing in the world, with the lira, peso and real all stronger.
And the best part is once you finally contain it, you have a bond market crash to look forward to. pic.twitter.com/UKmKWuDq6c
— zerohedge (@zerohedge) June 27, 2024
Since mid-2020, the Yen has plummeted 34% against the USD, a concerning trend for a developed nation’s currency. Earlier this year, Japanese authorities intervened with $62 billion to support the Yen, but it continues to decline.
READ MORE: Massive Shift Expected: Trillions to Move from Bonds to Bitcoin, Gold, and Stocks
Metaplanet, mirroring MicroStrategy, recently purchased $7 million worth of Bitcoin through a bond sale.
Financial analysts warn about the Bank of Japan’s monetary policies and Yen devaluation through excessive printing. Some suggest Japan should quietly accumulate Bitcoin as a hedge against currency devaluation.
Observers speculate if Japan will follow El Salvador’s lead in adopting a long-term Bitcoin strategy, potentially a significant step for the world’s fourth-largest economy.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
