Japan Threat to Bitcoin and Altcoins: Selling Pressure May Increase if Not Fixed! - Koin Bulletin

The rising core inflation in Japan is triggering expectations of interest rate hikes that could negatively impact the cryptocurrency markets.

According to CoinDesk analyst James Van Straten, Japan's core inflation continues to exceed market expectations, showing an annual increase of 3%. This situation raises the possibility of the Bank of Japan considering interest rate hikes. Interest rate increases could lead to volatility, especially among risky assets such as cryptocurrencies.

The higher-than-expected core inflation in Japan is increasing concerns about changes in the country's fiscal policies. This increase may intensify pressures on the Japanese yen (yen) and trigger a risk-averse sentiment in global markets. In particular, the cryptocurrency market may experience volatility due to central banks' interest rate hike decisions and the appreciation of currencies.

Japan's core inflation remaining high strengthens the possibilities of interest rate hikes. This may affect the demand for cryptocurrencies, which are among risky assets. Cryptocurrency investors may avoid assets that could lose value following interest rate hikes, which could lead to a decline in the cryptocurrency market.

The Japanese yen (yen) is trading at 149.22, which shows that the yen continues to weaken. However, if the central bank raises interest rates, the yen's strengthening could have a broader impact on global markets.