Japanese Yen and US Yields Pose Major Near-Term Risks for Bitcoin

Bitcoin faces a critical week as markets prepare for interest rate decisions from the Federal Reserve and the Bank of Japan. Analysts at XWIN Japan warn that a simultaneous rise in US yields and the Japanese yen could tighten global liquidity and trigger an unwinding of yen-funded carry trades, potentially forcing investors to reduce exposure to risk assets like crypto. Additionally, the market is monitoring a Senate cloture vote on the CLARITY Act and reacting to recent inflationary data, with experts noting that the current macro environment creates significant asymmetric risk for non-yielding assets.