The U.S. Urges Japan to Raise Interest Rates, Bitcoin's Fixed Supply Policy Advantage Back in Focus

BlockBeats News, September 1st. An analysis claimed that U.S. Treasury Secretary Janet Yellen recently urged Japan to raise interest rates to curb the continued depreciation of the yen, highlighting how traditional monetary policy is easily influenced by government and external factors. In contrast, Bitcoin's monetary policy is pre-set by code, with new coin issuance following a fixed schedule and halving approximately every four years, providing a higher level of predictability.

However, Bitcoin still struggles to escape short-term impacts from the traditional financial market. If Japan's interest rate hike drives a rapid appreciation of the yen, long-held low-interest yen-funded trades may be unwound, leading to sell-offs in stocks, bonds, and crypto assets. In August 2024, the Bank of Japan's interest rate hike strengthened the yen and put pressure on risk assets, including Bitcoin.

Technically, the 50-day moving average of BTC is currently trending upwards and is approaching a potential cross above the 200-day moving average, forming a "Golden Cross." However, analysts believe that moving averages have lagging effects, and the historical predictive power of the Golden Cross as an independent indicator is not stable.