Due to market speculation that the Bank of Japan is intervening in the exchange rate of the Japanese yen, Bitcoin is trading at a slight premium when calculated in yen

PANews reported on April 29 that according to CoinDesk, Bitcoin was trading at a small premium in the Japanese market on Monday as the yen exchange rate suddenly reversed and soared against the US dollar. According to TradingView data, the Bitcoin-Japanese Yen (BTC/JPY) exchange rate on the Japanese crypto exchange bitFlyer is about 0.2% higher than the price of Bitcoin denominated in US dollars on Coinbase (COIN). According to reports, Bitcoin has been denominated in yen in recent weeks. Earlier this month, the premium was as high as 1.49%, the highest level since March 2020, indicating that traders are diversifying funds into alternative assets to avoid yen fluctuations. Kaiko analyst Dessislava Aubert said: "Currently, the premium for Bitcoin in the Japanese market is hovering between 0.3%-0.4%, down from more than 1% in mid-April and the annual high of 1.7% reached in mid-March. However, this situation may change. In general, FX volatility is rising due to the increasing divergence in monetary policy expectations and geopolitical pressures, which may affect cryptocurrencies."

The yen fluctuated sharply during the holiday-thin Japanese trading session on Monday, initially falling to 160 pips per dollar, a 34-year low, but then rebounded 500 pips to 155 pips per dollar in the early part of the European trading session. The rapid recovery and magnitude of the yen's exchange rate triggered speculation that the Bank of Japan intervened or sold dollars to support the yen. Local media neither confirmed nor denied the rumors of the Bank of Japan's action, saying that low liquidity conditions and caution about potential central bank actions near the 160 pip mark led to the sudden surge in the yen. The yen has fallen out of favor with investors as the Bank of Japan (BOJ) has been unable to keep up with US interest rates due to the continuous increase in public debt. In other words, Japan's fiscal crisis is affecting the yen's exchange rate.