Falling Japanese Yen Causes Weak BTC, FOMC Now Focused!


"Hmm BTC is now flat even if there is good or bad news."

Hovering below $64,000, the price of cryptocurrency king Bitcoin (BTC) was slightly affected as the Japanese yen plunged to a new 34-year low against the United States (US) dollar, which has caused investors to pay more attention to the situation.

This is because the crypto market can see a positive impact if the Bank of Japan (BOJ) acts to sell US dollars to buy yen, so here it can be seen that the weakness of the US dollar can push the price of digital assets higher.

According to Quinn Thompson, founder of Lekker Capital, intervention from US policymakers who want to inject liquidity into the economy could also trigger a rise in crypto prices.

Even so, the volatility of the crypto market can occur as investors' attention will now be focused on the most anticipated meeting of the Federal Open Market Committee (FOMC) which will take place early Thursday morning this week.

Through observation, there is a 97.6% probability for the Federal Reserve (Fed) to keep interest rates unchanged while crypto market experts expect further delays in interest rate cuts.

Not only that, several other major economies such as the release of Trade Deficit and Productivity data including the US employment report for May 3, 2024 this week will also be important indicators for crypto investors about the state of the US economy.

It is well known that the spot BTC ETF has recently experienced quite significant volatility in net flows following the ETF seeing a large weekly net outflow of approximately $328 million which is also the cause of the BTC price drop again.

However, one analyst expects next week's announcement of the annual discretionary refinancing (QRA) from US Treasury Secretary Janet Yellen to offer relief to riskier assets to help crypto prices including BTC recover.

As of this writing, BTC price has plunged by 0.64% to $63,171 in the last 24 hours with a market cap of over $1 trillion and has recorded a 2.72% fall over the past week.