Bitcoin Tumbles, Goldman Loves Yen, and Tariffs Are Ruining Everything

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What to know:

  • Bitcoin fell 1% against the Japanese yen because, apparently, it’s allergic to trendlines. 🚀📉
  • Goldman Sachs is now all about the yen, calling it the ultimate “don’t panic” currency in case the U.S. economy decides to take a nap. 🛌💴
  • Tariffs are back, and they’re bringing recession fears, equity wobbles, and crypto existential crises. Fun times! 🎢

The Bitcoin-Japanese yen (BTC/JPY) pair had a rough Wednesday, failing to break through a trendline like a toddler trying to climb a bookshelf. Meanwhile, Goldman Sachs (GS) declared the yen the undisputed champion of hedging against U.S. tariff drama and recession scares. 🏆

On Japan’s bitFlyer, BTC/JPY dropped 1% after hitting a trendline resistance that apparently had “no entry” signs plastered all over it. TradingView data confirmed this tragic event. 📉

BTC’s USD price also took a hit, while Asian equity indices and U.S. futures floated aimlessly, waiting for President Trump’s “Liberation Day” tariffs to potentially kickstart a global trade war. Because what’s a Wednesday without a little chaos? 🌍💥

Tariff uncertainty has led investment banks like JPMorgan and Goldman Sachs to predict a higher chance of a U.S. recession or, at the very least, a growth rate that’s more “meh” than “wow.” 📉📊

Some crypto enthusiasts still believe Bitcoin could be a safe haven if the economy takes a nosedive. Goldman, however, is sticking with the yen, calling it the “Swiss Army knife of hedging.” 🗡️💴

“The yen is your best bet if the U.S. economy decides to go on vacation,” said Kamakshya Trivedi, Goldman’s head of global foreign exchange, interest rates, and emerging market strategy. He also noted the yen is great for hedging against U.S. labor market weakness and falling equities. Basically, it’s the financial equivalent of a cozy blanket. 🛋️

While Bitcoin is often called “digital gold,” it’s been known to move in sync with tech stocks. So, if Wall Street gets spooked by tariffs, the crypto market might just join the panic party. 🎉📉

Also, the yen’s strength could unravel risk-on trades funded by cheap yen loans, which would make everyone even more risk-averse. This happened last August when the yen carry trade fell apart, and Bitcoin dropped from $65K to $50K in a week. Ouch. 💥

Goldman predicts the yen will rise to the low 140s against the U.S. dollar this year. At press time, USD/JPY was at 149.77. The exchange rate is closely tied to the yield gap between 10-year U.S. and Japanese bonds, which recently hit its lowest since August 2022. 📈📉

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2025-04-02 10:34