Bitcoin shows rare -0.90 inverse correlation with USD/JPY over past year

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Bitcoin has developed an unusually strong negative 52-week correlation of -0.90 with the USD/JPY currency pair, according to CoinDesk. This means that as the dollar strengthened against the yen, Bitcoin's price tended to fall, and vice versa. The strength of this inverse relationship challenges the popular 'carry trade' theory, which had suggested Bitcoin moved in tandem with yen-funded risk trades. A correlation of -0.90 is considered exceptionally high in financial markets, indicating a near-mirror-image relationship between the two assets. Analysts are now reassessing how macroeconomic currency dynamics may be influencing Bitcoin's price movements.

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