Recently, the Japanese yen has shown resilient growth despite declining global cryptocurrency markets. Experts link this to concerns over tariff policy and an impending recession.
Reasons for Japanese Yen Growth
According to Goldman Sachs analysts, the Japanese yen is currently the best asset for hedging against risks caused by a possible recession and tariff uncertainties. Historically, the yen has demonstrated strength in risk-averse environments, a trend that is confirmed by current conditions.
Impact on Bitcoin and Crypto Market
Bitcoin has started to decline again after a brief rise above $88,000, while the Japanese yen is strengthening. On the bitFlyer exchange, BTC to yen dropped by 1% on April 2. Kamakshya Trivedi of Goldman Sachs noted that cryptocurrency weakening is related to the overall risk-aversion sentiment caused by the tariff war and other economic factors.
Goldman Sachs' Forecasts and Expectations
Goldman Sachs predicts the yen will strengthen below 140 to the US dollar this year. The financial giant believes this strengthening could increase risk aversion. Previous periods of yen strengthening were accompanied by unwinding of carry trades, a situation that might repeat, adversely impacting Bitcoin and the cryptocurrency market.
Current economic conditions and Goldman Sachs' forecasts suggest potential further strengthening of the Japanese yen, impacting the cryptocurrency market. Investors should consider these factors when assessing their assets and strategy.
