Bitcoin was weak when trading in Asia, and the price fell below $60,000. At the same time, the yen continues to depreciate against the United States dollar, touching the lowest level since 1986, leading to the strengthening of the dollar as a whole and increasing the volatility of global risk assets.
Strategy started a new capital plan.
Market data show that the BTC fell by more than 1 per cent that day, reported $594 million at one time and still operating under a simple moving average of 200 weeks. On the foreign exchange market, the United States dollar to the Japanese yen rose to 162.40 and reached a new high of almost 40 years.
On Monday, Strategy, the most publicly listed company in the world with bitcoin, approved up to $1 billion in priority and category A stock buy-back plans and launched a total of $1.25 billion “liquidation plans”. According to the disclosure, this arrangement would be financed through, for example, the sale of bitcoin.
This means that Strategy may sell more than $1 billion in bitcoin in the current weak market environment. This is in clear contrast to the long-standing emphasis by the founder, Michael Saylor, on the “Don't sell bitcoin”.
The yen depreciation pushes up cross-market fluctuations
According to marketers, this adjustment is more a matter of buying time for corporate finance pressures than a fundamental solution to capital structure problems. The Chief Investment Officer of Arca, Jeff Dorman, stated that this was simply a delay of one to two years in the future.
In the context of the continued weakness of the yen, the United States-Japan spreads have remained high for a long time. In the past few years, Federal Reserve interest rates have risen to over 5 per cent, while Japanese interest rates have long been close to zero. Even though the Central Bank of Japan recently increased its policy interest rate by about 1 per cent, there is still a clear gap between the US and the US level of about 3.5 per cent.
In this context, the yen has long been used as a currency for arbitrage transactions. Investors borrow low-cost yen and invest in higher-yield equities, bonds and other risk assets. Since 2021, the cumulative depreciation of the yen against the United States dollar has been about 57 per cent, further increasing the scale and sensitivity of such transactions.
The risk of arbitrage is being addressed.
The market fears that if the Central Bank of Japan is then forced to take tougher measures, or yen fluctuations continue to widen, arbitrage transactions that depend on Japanese yen financing may be concentrated. By that time, funds could be withdrawn from the stock, bond and encryption markets at the same time, increasing downward pressure on asset prices.
Some observers also pointed out that the high level of debt in Japan limited the space for the Bank of Japan to rapidly increase interest rates. Japan ' s debt to GDP has exceeded 220 per cent. In this context, there is now more official reliance on verbal warnings to stabilize the exchange rate than on a rapid and significant tightening of the policy.
For the encrypted market, the short-line pressure comes from two ends: the US dollar's strong suppression risk preference, and Strategy's potential currency arrangement increases supply expectations. Bitcoin continues to face a double disturbance in foreign exchange and financial terms until the yen movement and the details of the company ' s follow-up implementation become clearer.