Dec 21, 2025
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Bitcoin Recovery Hindered by Weak Yen and Low Spot Demand
Despite a recent price recovery, Bitcoin faces uncertainty due to macroeconomic factors. A new on-chain evaluation suggests that this recovery is part of a weak trend.
Japanese Yen and Crypto Market
- The Bank of Japan's rate increase to 0.75% did not strengthen the yen; it remains weak.
- A weak yen typically fuels 'yen-funded carry trades' into cryptocurrencies, but this trend is absent now.
- The Bitcoin: Estimated Leverage Ratio shows a decline in leverage use, indicating limited risk-taking.
Coinbase Premium Index Insights
- The Coinbase Premium Index has moved from deep negative to moderate levels, indicating reduced selling pressure.
- Lack of spot demand from U.S. investors suggests the recovery isn't a structural uptrend yet.
- A shift to positive territory in the index, alongside rising prices without increased leverage, could indicate ongoing accumulation.
Currently, Bitcoin is valued at $88,034 with a slight 0.84% loss over the last 24 hours.