Yen Strength, Rising Bond Yields Pressure Risk Assets; Bitcoin Weakens Around $78,000

Forecast Trend Report by Period

Bitcoin and other risk assets are weakening as a stronger yen coincides with rising global government bond yields.

CoinDesk reported on September 8 that the dollar-yen exchange rate fell as low as 152.99 intraday, pushing the Japanese currency to its strongest level since February. Markets are growing wary that the yen carry trade, in which investors borrow at low rates in yen to invest in risk assets, could begin to unwind.

Bitcoin has fallen more than 1% over the past 24 hours and was trading just above $78,000. Gold also slipped 1% to $4,390 an ounce, while U.S. technology stocks edged lower before the market open.

Oil prices, by contrast, extended their gains. Brent crude rose 2% over the past 24 hours to approach $100 a barrel, while West Texas Intermediate climbed 3.5% to near $95.

In bond markets, the yield on the U.S. 10-year Treasury topped 4.8%, while government bond yields in the U.K., France and Germany also rose. The simultaneous rise in the yen and long-term borrowing costs is adding to pressure on risk assets globally.