[Analysts say Bitcoin is supported by the weakening of the yen against the dollar and the rise in risk appetite] According to Mars Finance, Bitcoin has risen by more than 6% since the Federal Reserve announced a 50 basis point cut in the federal funds rate earlier this week, reaching a high of $63,800 in early trading on Friday. Earlier this week, the price of Bitcoin briefly hit a local low of around $57,500 before rebounding.

Derivatives trader Gordon Grant said that in addition to the Fed's policy changes, a weaker yen also provided support for Bitcoin. The dollar has been strengthening against the yen since Monday, providing further upside for Bitcoin, which can benefit from this specific currency dynamic. Grant told The Block that a stronger dollar against the yen has historically been good for riskier assets because the yen is often used as a funding currency for "risk-on" trades, where investors seek higher returns by borrowing low-interest currencies such as the yen.

Grant said the yen’s weakness against the dollar has a huge impact on the market. “A 1% appreciation in the dollar against the yen has already driven gains in assets like gold, silver and Bitcoin,” Grant noted. He added that while Bitcoin can act as a “short dollar alternative” — appreciating when the dollar weakens — it also behaves like a high-beta asset, meaning that Bitcoin tends to rise when broader market risk sentiment improves.