Japan’s yen weakened to 160.16 per dollar on Friday, 28 August, after the country spent ¥15.4 trillion, or roughly $97 billion, supporting the currency between 30 July and 26 August. The intervention included rare coordinated purchases with the US on 31 July, but the yen has surrendered more than half its gains since last month’s action. Higher US interest rates continue to make dollar assets more attractive, while Federal Reserve chair Kevin Warsh’s pledge to return inflation to target supported the dollar and briefly pushed Bitcoin below $77,000 as investors anticipated higher US rates. Further Japanese intervention or higher domestic rates could pressure yen-funded carry trades, in which investors borrow yen cheaply to buy assets elsewhere. A sharp yen rise would increase repayment costs and could prompt asset sales. A similar reversal in August 2024 helped drive losses of up to 20% in Bitcoin and Ethereum. Metaplanet chief executive Simon Gerovich said in Hong Kong that Asian savers were ready to move beyond cash and adopt Bitcoin, a view aligned with his company’s strategy of buying and holding the asset. He said current buyers were committed, believed the market bottom had formed and expected a brighter remainder of the year, while Bitcoin remains exposed to sudden market sell-offs.