It looks like multiple members of the Bank of Japan are pushing for interest rate hikes, and in line with that, the yen has been getting stronger. The yen-dollar exchange rate has also strengthened to the point where it’s moving toward around 3300 yen.

But what’s interesting is that while the yen is rising, Bitcoin is actually falling. Normally, people say that when the yen weakens, BTC is more likely to be bought, but maybe that correlation has started to break down recently. It’s possible that the Bank of Japan’s tightening moves are putting pressure on risk assets across the board.

In a period of rising interest rates, the yields on dollar-denominated assets improve, so it makes sense that capital flows into that area. Assets like Bitcoin, which have no yield, would become relatively less attractive. We’ll just have to keep an eye on how the market reacts for now.