Bitcoin News: Bitcoin slipped during Asian hours as the Japanese yen sank to its weakest level in 40 years, lifting the U.S. dollar and weighing on risk assets globally.

BTC dropped more than 1% on Tuesday, falling below the $60,000 mark as the yen’s sharp decline triggered volatility in currency markets. The asset remains below its 200-week simple moving average, a key long-term level watched by traders.

At the same time, Strategy—the largest publicly traded Bitcoin holder—approved plans to repurchase up to $1 billion each of its preferred and Class A shares. The firm also unveiled a $1.25 billion “Bitcoin Monetization Program,” opening the door to potential BTC sales to raise capital. The move implies the company could offload more than $1 billion worth of Bitcoin into a weak market, a clear departure from Michael Saylor’s long-standing “never sell” stance.

Some analysts argue the shift may offer only temporary relief. Strategy’s preferred stock, STRC, has fallen sharply in recent weeks, weakening a key funding channel used to support ongoing Bitcoin accumulation.

Jeff Dorman, CIO of Arca, said the move effectively delays deeper capital structure issues, adding that these pressures are likely to re-emerge unless Bitcoin stages a strong rally.

Yen Decline Deepens

The Japanese yen slid to 162.40 per U.S. dollar, its lowest level since 1986, pushing the dollar higher across global markets. The Dollar Index rose to 101.32 after hovering near 101 a day earlier.

The yen’s prolonged weakness reflects diverging monetary policies. Since 2021, it has depreciated by roughly 57% against the dollar as the U.S. Federal Reserve lifted rates aggressively while Japan maintained ultra-low borrowing costs. Although the Bank of Japan has recently raised rates to around 1%, they remain well below U.S. levels near 3.5%.

Market observers see the yen’s slide as a reflection of Japan’s fiscal constraints. With debt exceeding 220% of GDP, aggressive rate hikes could destabilize the economy, while keeping rates low continues to pressure the currency.

For now, Japanese authorities are relying on verbal intervention to slow the decline, while the Bank of Japan’s tightening stance remains limited. Some analysts warn that any decisive policy shift could trigger a large-scale unwinding of yen-funded carry trades, potentially pressuring global markets, including crypto.