Japanese Yen, US Yields Pose Biggest Near-Term Bitcoin Risk: Analysts

Bitcoin (BTC) is heading into one of its most consequential weeks of the year so far, with the Federal Reserve announcing its September rate decision on Wednesday and the Bank of Japan following two days later.

Markets are pricing in roughly an 85% chance of a 25-basis-point Fed hike, and according to XWIN Japan, the real question isn’t whether rates move but how hawkish both central banks sound once they do.

Fed, BOJ, and a Trade Threat Collide XWIN Japan laid out the scenario that worries it most: US yields and the yen rising together.

Higher US rates tighten global liquidity, and a stronger yen risks speeding up the unwind of yen-funded carry trades, pushing investors to cut risk across stocks and crypto at once.