Bitcoin's rally has stalled due to waning demand, as the anti-risk Japanese yen gains strength in anticipation of a potential Bank of Japan (BOJ) rate hike in December. The Australian dollar-Japanese yen exchange rate (AUD/JPY) has declined, indicating a broad-based risk aversion. Historically, a drop in AUD/JPY suggests caution among investors, particularly with BTC's recent surge nearing $100,000. A similar scenario in late July saw the yen gain on BOJ rate hike rumors, causing BTC to fall from approximately $70,000 to $50,000. Currently, the AUD/JPY pair has dipped below its trendline, reflecting a renewed strength in the yen amid expectations of a BOJ rate increase, coupled with uncertainties around the Federal Reserve's potential rate cuts and resurfacing trade war concerns. Analysts warn that a continued decline in the AUD/JPY could negatively impact risk assets like cryptocurrencies. Overall, the evolving landscape points toward a period of heightened caution in financial markets.

Source 🔗