As CoinDesk reported, BTC fell 3.5% on Monday, which analysts attributed to the hawkish stance of new Japanese Prime Minister Shigeru Ishiba and the decline in the Nikkei index.
Nonetheless, the yen broadly weakened on Monday, challenging the notion that Ishiba was influencing risk assets. USD/JPY and AUD/JPY rose 1% and 1.15%, respectively, providing positive signals for BTC and other risk assets.
Shigeru Ishiba said on Sunday that monetary policy should maintain its accommodative trend, and markets did not seem concerned about his hawkish image and possible rapid rate hikes by the Bank of Japan.
BTC’s drop on Monday was likely due to a pullback from its previous nearly 90-degree rally from below $53,000, rather than just the impact of Ishiba and the Nikkei. It’s the yen, not the Nikkei, that needs to be watched going forward.
