TechFlow news — On September 20, according to The Block, derivatives trader Gordon Grant said the strength of the U.S. dollar against the Japanese yen has provided support for Bitcoin. Grant noted that a stronger dollar relative to the yen has historically benefited high-risk assets, as investors often borrow low-yielding currencies like the yen to finance "risk-on" trades in pursuit of higher returns. He emphasized: "When the dollar rises more than 1% solely against the yen, it drives appreciation in assets such as gold, silver, and Bitcoin." Grant added that Bitcoin not only acts as a "proxy for shorting the dollar," rising when the dollar weakens, but also behaves as a high-beta asset that tends to increase when overall market risk sentiment improves.
The Bank of Japan's decision on September 20 further reinforced the macroeconomic environment of a strong dollar and weak yen. The central bank chose to keep its policy interest rate unchanged at 0.25%, reflecting hesitation about raising rates. This stance contrasts with its July statement, when the BOJ indicated it would continue hiking rates if inflation developed as expected. Despite expectations that consumer price index (CPI) inflation could rise in 2025—mainly due to the phasing out of government measures that had been suppressing CPI inflation—the central bank decided to maintain stable interest rates.
