The leading cryptocurrency by market value has consistently drawn a premium in JPY terms in recent weeks. Early this month, the premium rose as high as 1.49%, the highest since March 2020, a sign of traders diversifying into alternative assets to bypass the yen volatility.
"Currently, the bitcoin premium on Japanese markets is hovering around 0.3%-0.4%, having declined from over 1% in mid-April and a yearly high of 1.7% reached in mid-March. However, this could change. Overall, FX volatility is rising due to increasingly divergent monetary policy expectations and geopolitical stress, and this could impact crypto," Dessislava Aubert, an analyst at Paris-based Kaiko, told CoinDesk.
The recovery's speed and magnitude spurred talks of BOJ intervening or selling dollars to put a floor under the yen. Local media neither confirmed nor denied the rumored BOJ action, saying the low liquidity conditions and caution about potential central bank action near 160 pips led to the sudden yen.
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