BTC price trails gold as yen intervention concerns weigh on risk assets

Bitcoin struggled to maintain ground, falling 0.8% to below $88,000, while Ether also declined, as concerns over the strengthening Japanese yen and fiscal instability caused a divergence from traditional safe-haven assets like gold. The yen rallied significantly after Japanese Prime Minister Sanae Takaichi indicated readiness to take necessary measures against abnormal market movements, especially as 10-year bond yields hit a 27-year high. Traders interpreted a recent Fed "rate check" as potential coordination with Japan, leading to the unwinding of the yen carry trade. This dynamic caused capital to flee risk assets like stocks and Bitcoin, instead flowing into gold, which topped $5,000 per ounce. Experts suggest Bitcoin's lack of immediate liquidity preference during stress hurts it compared to gold. Furthermore, blockchain data shows long-term holders selling at a loss, indicating internal weakness. Investors are also awaiting the upcoming Federal Reserve meeting and monitoring the risks associated with a potential U.S. government shutdown.

(Source：CoinDesk)