Bitcoin Just Survived the Yen Shock That Crushed Crypto 2 Years Ago

Japan spent nearly $100 billion in August trying to strengthen the yen. Even after that intervention, the currency failed to reach 154 against the dollar. Then traders pushed it there themselves.

USD/JPY fell from 160.39 on Wednesday to 154.50 by Monday, meaning the yen strengthened 3.7% in three sessions without another confirmed rescue from Tokyo.  Now, why does this matter for the crypto market?

Because a similar yen surge in August 2024 forced investors to unwind cheap yen-funded trades and dump risk assets, including Bitcoin. USD/JPY and Bitcoin Price Performances. Source: TradingView Bitcoin Just Passed the Yen Test The danger was always the speed of the move.

BeInCrypto flagged the risk on September 1, when the yen was still near 159.75 per dollar. In August 2024, a similar rush out of yen-funded trades forced investors to dump risk assets. Bitcoin and Ethereum fell as much as 20%. This time, Bitcoin held above $79,000.