Bitcoin recovers to $91,000, is the $0.6 increase in silver a signal? Bank of Japan policy change and rebound in risky assets

Recently, Bitcoin has regained the $91,000 level, sending positive signals to the market. Behind this movement are complex factors such as the Bank of Japan’s monetary policy signals and a reversal of the yen’s weakness, leading to a broad rally in risk assets including the $0.6 increase in silver prices.

Bitcoin is currently attempting to break out of its narrow trading range between $88,000 and $90,000, repeatedly trying to move beyond this zone. Notably, around noon Eastern Time, a rapid 2% surge appears to be driven by the possibility of intervention by Japanese authorities in the foreign exchange market. When the Bank of Japan maintained its overnight interest rate but issued a somewhat hawkish policy statement, speculation of foreign exchange intervention responded, leading to yen strength, which in turn triggered a rebound in risk assets such as Bitcoin.

The Significance of Yen Reversal and Weakening in the Context of Bank of Japan Policy Signals

The change in the Bank of Japan’s policy signals indicates a major shift in the leverage carry trade structure that has driven the yen’s weakness over recent months. Many trader communities believe that as the yen, which had been weak, turns stronger within a certain range, the entire cryptocurrency market, including Bitcoin, is likely to recover using the same mechanisms. This exemplifies how global macro policy shifts can impact the digital asset markets.

Simultaneous Rebound of Cryptocurrency Mining and Exchange Stocks

The positive market sentiment has been directly reflected in the stock prices of listed companies related to cryptocurrencies. A strong rebound has been observed mainly among Bitcoin mining companies with high exposure to AI infrastructure. Companies like IREN, HUT, WULF, and CLSK, which started the day with declines, have recovered with gains of 5-10%. MicroStrategy (MSTR), the largest Bitcoin holder, also rebounded by 5% from its lows, and Coinbase (COIN), which had fallen the previous day, limited its decline to 1%.

The rise of these related stocks indicates not only a recovery in the cryptocurrency market itself but also institutional investors adjusting their positions. The NASDAQ index also reversed with a 0.6% gain, reflecting a broad recovery in risk asset appetite.

Precious Metals Market Also Surges with a $0.6 Increase

The scope of risk asset recovery has extended to the precious metals market. Silver prices rose by over $0.6 per ounce to reach $101.44, an increase of over 5%. Gold also rose about 1.5%, approaching $5,000, while platinum and palladium surged by over 6%. This broad rally in risk assets suggests that the global macro environment is shifting into recovery mode.

Accelerated Inflows into XRP and Alternative Cryptocurrencies

Despite the Bitcoin-led rebound, XRP has declined about 4% this month. However, spot XRP ETFs have recorded a net inflow of $91.72 million this month, contrasting with the continued outflows from Bitcoin ETFs. This is interpreted as a sign of portfolio diversification among institutional investors.

The broad risk asset rally unfolding alongside Bitcoin’s attempt to recover to $91,000 once again demonstrates the influence of Bank of Japan policy signals on the global asset allocation structure. Moving forward, the market trend will largely depend on how persistently these macro policy shifts continue to influence the markets.