Bitcoin Volatility Surges in Japan: BTC-JPY Outpaces BTC-USD

Bitcoin’s volatility hit new highs in Japan as the BTC-JPY pair surpassed BTC-USD in 90-day realized volatility. This marks the first time since 2022 that BTC-JPY has been more volatile than its U.S. counterpart. Japanese market conditions, especially following last week’s general elections, played a significant role in this shift.

The Japanese yen is under increased pressure. Investors are hesitant toward the yen, which is near multi-month lows. The yen’s weakness has made Japanese assets, including BTC-JPY, more volatile. The heightened volatility around the BTC-JPY pair reflects this vulnerability and increased market uncertainty.

Japan’s recent election outcomes added further unpredictability to the market. Investors initially hoped the general elections would stabilize the yen. Instead, volatility rose, impacting major currency pairs, including BTC-JPY. The BTC-JPY pair now has a volatility rate above 50%, while BTC-USD lags slightly below.

📊Markets brace for volatility post-U.S. elections, but last week’s Japanese general elections already surprised investors, driving increased Yen volatility.

👉BTC-JPY 90-day realized volatility has surpassed BTC-USD for the first time since 2022. #Crypto #BTC #JPY pic.twitter.com/QmyXQSQag8

— Kaiko (@KaikoData) October 30, 2024

In contrast, the BTC-USD market has remained relatively stable. Though the U.S. dollar faced pressures of its own, BTC-USD volatility remained more controlled than BTC-JPY. As the U.S. election approaches, however, traders are preparing for possible volatility spikes in the BTC-USD market. Analysts expect that post-election developments could influence this pair’s stability.

The yen’s struggles raised concerns among Japanese investors. Despite a general preference for safe assets, the yen’s weakness continues to discourage buyers. The yen’s current levels make it difficult to attract new interest. This sentiment has pushed some investors towards alternative assets, contributing to the increased volatility of BTC-JPY.

Read also: Crypto Market Stalls as Korean Trading Drops, U.S. Election in Focus

Bitcoin’s role as a hedge against traditional markets also supports its popularity in Japan. Amid economic uncertainty, Japanese investors are exploring Bitcoin. This trend has amplified the BTC-JPY pair’s volatility as market participants react to broader financial conditions.

With major elections in both Japan and the U.S., markets are bracing for more uncertainty. The yen’s vulnerability, coupled with the upcoming U.S. election, presents a dynamic outlook for BTC traders globally. As BTC-JPY volatility surpasses BTC-USD, investors are watching both markets for potential shifts.

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