PANews March 21 news, according to CoinDesk reports, Japan's core inflation in February rose by 3% year-on-year, although it has fallen from 3.2% in January, it is still higher than the market expectation of 2.9%. The overall CPI decreased from 4% to 3.7%, still far exceeding the central bank's target of 2%. Currently, Japan's inflation level is nearly 100 basis points higher than that of the United States, marking the largest gap since 2015. Coupled with the Shunto wage negotiations driving up salaries, market expectations for the Bank of Japan (BOJ) to raise interest rates have intensified.

As the yen strengthens, it typically leads to heightened market risk aversion, which may put pressure on the cryptocurrency market. As of now, the USD/JPY exchange rate is trading at 149.22, having dropped nearly 300 points since March 11. Meanwhile, the yield spread between US and Japanese 10-year government bonds has narrowed, with Japanese 10-year bond yields rising above 1.5% and 30-year rates breaking 2.5%, both at multi-decade highs, reinforcing the trend of a stronger yen. If the yen continues to appreciate, it may trigger a global risk asset adjustment, potentially putting pressure on the cryptocurrency market, similar to the market risk aversion seen in August 2023.