Bitcoin fails to reclaim $80K as Bessent fuels yen strength around 153 per dollar
Bitcoin trended lower with US stocks on Iran escalation while US Treasury Secretary Scott Bessent contributed to fears of a yen carry-trade unwind.
Bitcoin's price failed to surpass $80,000 on Wednesday as investors focused on the strength of the Japanese yen. US Treasury Secretary Scott Bessent's remarks fueled concerns about a potential collapse of the yen carry trade. Bitcoin traded below $80,000, down around 0.4% for the day. The BTC/USD pair struggled to reclaim its $80,000 level.
Meanwhile, US stocks saw a decline following US strikes on Iranian oil tankers, driving oil prices to fresh three-month highs. The Japanese yen hit its highest level against the dollar since February, climbing 6.5% since the start of August. Short positioning in the yen reached record levels, with over 5 trillion yen short. Analysts warned that the yen's strength could lead to a rapid unwinding of the carry trade, especially with the Bank of Japan's expected interest rate hike on September 28.
Bessent hinted at the possibility of future yen interventions, making him a perceived "house" in the market.
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