Key Points
- A declining Japanese Yen could potentially boost Bitcoin value, according to a Swan Bitcoin executive.
- Increased liquidity in the market might favor Bitcoin as investors explore safer, alternative stores of value.
A Swan Bitcoin executive has provided an interesting analysis on the potential impact of the Japanese Yen’s decline on the value of Bitcoin.
The broader cryptocurrency market has been experiencing increased volatility due to global macro developments. The executive suggests that despite potential negative implications for US Treasuries, a falling Yen could benefit Bitcoin.
Decline of the Japanese Yen
In the past 30 days, the Japanese Yen has depreciated by 2.9%, with 1JPY currently valued at 0.0064 USD. Dante Cook, Swan Bitcoin’s head of business, stated that Japan might have to sell its US Treasury holdings to support its currency unless the US government provides backdoor liquidity or a swap line agreement for the two central banks to exchange currencies.
According to Cook, this sell-off could trigger uncertainty in traditional securities, potentially leading to a significant influx of liquidity into the market. Bitcoin could benefit from this surge in liquidity as investors seek safer, alternative stores of value.
Institutional Interest in Bitcoin
Bitcoin has witnessed a substantial influx of liquidity from institutional investors following the US Securities and Exchange Commission’s approval for the trading of 11 spot Bitcoin ETFs. Data from Farside shows that these ETFs have collectively experienced total net inflows of $11.78 billion since their inception. At present, Bitcoin is trading at $61,680, marking a 7.45% increase over the past week.
Cook also suggested that the current uncertainty in the traditional financial market could push more people towards Bitcoin and riskier crypto altcoins. He highlighted the introduction of the MarketVector MEMECOIN index by VanEck, a spot Bitcoin ETF provider, despite its relatively lackluster performance in the ETF competition. According to him, this move is somewhat surprising but not entirely unexpected given the ongoing uncertainty within traditional financial markets.
