Bitcoin struggled to surpass the $80,000 threshold on Wednesday, recording a daily decline of approximately 0.4 percent. The asset's price movement mirrored a downturn in US stocks, which were negatively impacted by recent US strikes on Iranian oil tankers.
Geopolitical tensions pushed oil prices to three-month highs, with WTI crude exceeding $96 per barrel and Brent crude rising above $101 per barrel. Meanwhile, the Japanese yen reached its strongest level against the dollar since February, trading at $0.0065.
The yen has appreciated by 6.5 percent since the beginning of August. Market data from Barchart indicates that short positions on the currency exceeded 5 trillion yen at the start of September, raising concerns about a potential unwind of the yen carry trade.
US Treasury Secretary Scott Bessent recently signaled openness to further foreign exchange interventions. Analysts from Saxo suggest that continued yen strength could force a rapid reduction in leverage, impacting liquidity conditions across global financial markets.
The Bank of Japan is expected to implement a 0.25 percent interest rate hike during its upcoming meeting scheduled for September 28. This anticipated policy shift adds further pressure on existing short positions and market volatility.
