Bitcoin News: BTC and the Japanese yen are moving together like never before

The 90-day correlation coefficient between Bitcoin (BTC) and Pepperstone's Japanese yen index (JPYX) has hit an unprecedented high of 0.86, meaning 73% of BTC's price swings over the past 90 days mirror those of the yen. This tight linkage implies that BTC has temporarily lost its appeal as a portfolio diversifier, acting instead as a leveraged bet on the yen's performance against a basket of currencies including EUR, USD, AUD, and NZD. This correlation has been strong since October 2025, tracking the yen's downtrend, which is attributed to concerns over Japan's massive fiscal debt (240% debt-to-GDP ratio) trapping the central bank between raising rates and risking a yen slide. Traders are cautioned that correlations between crypto and traditional assets are often transient.

(Source：CoinDesk)