Analysis: Signs of further yen rate hikes curb Bitcoin's gains

BlockBeats news, September 3, according to Coindesk, Bitcoin rebounded to break through $59,000, but the rally has weakened due to hints of further interest rate hikes in Japan. However, according to the CoinDesk20 index, BTC is still up 1% in the past 24 hours, while the broader cryptocurrency market has risen by about 0.9%.

A series of US economic data will be released this week, starting with the August manufacturing purchasing managers' index released by the Institute for Supply Management (ISM) later on Tuesday. Weak data will strengthen the case for the Fed to cut interest rates, which is expected to boost riskier assets such as cryptocurrencies.

Bank of Japan Governor Kazuo Ueda reiterated that the central bank will raise interest rates further if the economy and inflation develop as expected. Ueda said that the economic environment remains loose, and even after the benchmark borrowing cost was raised at the end of July, the inflation-adjusted interest rate is still negative. This is the first time in decades, triggering the unwinding of yen carry trades, causing instability in risky assets.