TOKYO: Bitcoin soared to a new high in early Asian trade on Thursday (Aug 14), while the yen strengthened sharply after the US Treasury Secretary signaled Japan may raise interest rates.
The cryptocurrency broke past its previous July peak, briefly topping US$124,500 before easing. Its recent rally has been fuelled by US regulatory shifts under President Donald Trump, a staunch supporter of the crypto sector.
“The crypto market is enjoying a period of highly favourable fundamentals,” said Samer Hasn, senior market analyst at XS.
The yen jumped to its strongest level since late July after US Treasury Secretary Scott Bessent told Bloomberg TV he had warned the Bank of Japan (BOJ) it was “behind the curve” in tackling inflation.
“They’re going to be hiking, and they need to get their inflation problem under control,” Bessent said.
The BOJ, which had maintained a negative interest rate policy for years, began tightening monetary policy in 2024. However, it left rates unchanged at the end of July and is widely expected to hold steady again in September.
According to Hideo Kumano of the Dai-Ichi Life Research Institute, Bessent’s comments “may be aimed at weakening the dollar.” Bessent and President Trump have also been pressuring Federal Reserve Chair Jerome Powell to cut rates quickly.
Expectations of US rate cuts, following soft inflation data on Tuesday, have buoyed equities, with the S&P 500 and Nasdaq both hitting record highs this week. Tokyo’s Nikkei also reached a record, closing 1.3% higher on Wednesday.
