A stronger Japanese currency is eroding local-currency crypto performance, leaving yen-denominated trading pairs trailing their dollar-based equivalents as firmer Bank of Japan rate-hike expectations lift the yen.
Bitcoin and other major cryptocurrencies are underperforming in yen-denominated markets after a sharp rise in the Japanese currency. As USD/JPY moved to 161.55, BTC/JPY on Tokyo-based BitFlyer rose 0.68%, trailing a 1.15% gain for BTC/USD on Nasdaq. XRP, SOL and ETH showed similar gaps. The move followed Japan's June producer price index rising 7.1% year on year, which strengthened expectations for additional Bank of Japan rate hikes and helped drive the yen higher. The divergence highlights how foreign-exchange swings can materially alter local-currency crypto returns even when the underlying assets are moving differently in U.S. dollar markets.