U.S. looks to influence Japan's monetary policy. It couldn't do that with bitcoin

Markets are said to hate uncertainty, and traditional finance is serving it right now from all directions, including the institutions that set the rules.

An article published in NHK today is a perfect example. The Tokyo-based newspaper said U.S. Treasury Secretary Scott Bessent encouraged Japan to raise interest rates to stem the ever-sliding yen. That’s a top official in the world’s largest economy trying to influence monetary policy in another nation.

Compare that with how bitcoin $BTC$78,003.69 works. The largest cryptocurrency’s monetary policy is enshrined in its code. New coins enter the market on a fixed schedule and roughly every four years the pace of new supply is cut in half. This predictability is precisely the reason why $BTC proponents hail it as better money and a store of value. That does not necessarily mean that its market value is disconnected from the rest of the market in the short run.

If Japan does increase rates and the yen rises quickly, cheap yen-funded bullish bets in stocks, bonds and even cryptocurrencies taken over the years can unwind. Foreigners who bought Japanese stocks on the back of a weak yen may sell. Japanese savers who sent money overseas as a hedge may bring it home. When those positions close, risk assets could be sold. Bitcoin suffered collateral damage in early August 2024, when a Bank of Japan rate increase drove the yen higher and spurred a wave of risk aversion.

So while bitcoin’s long-term bull case looks as solid as ever, it still trades like a high-risk asset when traditional markets get squeezed by rate and currency shocks. Stay alert!

Read more: For analysis of today’s activity in altcoins and derivatives, see Crypto Markets Today . For a comprehensive list of events this week, see CoinDesk’s “Crypto Week Ahead.”

What’s trending

• North Korean hackers are moving tens of millions on Hyperliquid as Trump pushes to onshore the crypto platform (CoinDesk): Blockchain data reviewed by CoinDesk appears to show wallets said to be tied to North Korea’s Lazarus Group sold more than $30 million in bitcoin on the platform in the last three weeks alone.
• CME’s share of $XRP futures jumps as token rallies 40% in a week (CoinDesk): A growing share of $XRP futures trading is moving toward CME even as traders cut leveraged positions across crypto exchanges.
• Global bond yields soar to multi-decade highs as Middle East turmoil reignites inflation fears (CNBC): Government bond yields jumped across major markets, with borrowing costs in Japan and the U.K. touching multi-decade highs, and U.S. Treasury yields surging.
• Oil prices rise and stocks slide as Middle East violence flares, adding to uncertainty (AP): Oil prices jumped 2% and world shares fell Tuesday. Brent crude gained 2% to $92.35 per barrel. U.S. benchmark crude advanced 2.5% to $87.84 per barrel.