Bitcoin (BTC) opened the week on a weaker note, pressured by a series of unfavorable developments in the United States as investors await the Federal Reserve’s initial policy announcement for 2026.
Adding to these challenges from across the Pacific, emerging signals from Japan hint at potential market turbulence.
Speculation is mounting around possible intervention by Japanese authorities in foreign exchange markets to bolster their currency, the Yen (JPY), raising concerns that Bitcoin might experience additional downward pressure.
Historical trends reveal that such interventions targeting the Yen often trigger an initial drop in Bitcoin’s price before it rebounds sharply.
A Yen intervention occurs when Japan’s government steps into currency markets, typically selling US dollars and purchasing yen to counteract rapid depreciation of their currency.
Market experts highlight that this scenario has unfolded twice previously. During those instances, Bitcoin’s value declined roughly 30% from its peak before hitting a bottom and subsequently surging over 100% higher.
Mikybull Crypto, a well-known cryptocurrency analyst, suggested this pattern could repeat itself soon: “We are likely to see history repeat—Bitcoin may dip initially but then bounce back strongly.”
Certain forecasts anticipate Bitcoin prices dipping into the $65,000-$70,000 bracket during this phase.
Please note: This information does not constitute financial advice.