U.S. Treasury Secretary Yellen Urges Japan to Raise Interest Rates, Bitcoin Monetary Policy Under Scrutiny

U.S. Treasury Secretary Janet Yellen recently urged Japan to raise interest rates to curb the depreciation of the yen. Analysts point out that traditional monetary policies are easily influenced by government and external factors, while Bitcoin's monetary policy is preset by code, with new coin issuance following a fixed rhythm, halving approximately every four years, providing greater predictability. In the short term, Bitcoin still struggles to escape the impacts of traditional financial markets. If Japan's interest rate hike leads to a rapid appreciation of the yen, low-interest yen financing trades may be unwound, potentially triggering sell-offs in stocks, bonds, and crypto assets. In August 2024, the Bank of Japan's interest rate hike had previously strengthened the yen and put pressure on risk assets, including Bitcoin. Technically, the 50-day moving average of BTC continues to rise, nearing a crossover with the 200-day moving average, which could form a golden cross. Analysts believe that moving averages have a lagging nature, and the historical predictive effectiveness of the golden cross as an independent indicator is not stable.

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