The Japanese government starts printing money, will Bitcoin rise?

Holger Zschaepitz, senior editor at Germany's Die Welt, shared a chart showing Japan's struggling economy and underperforming 10-year bond yields.

As shown in the chart above, Japan's 10-year bond yield has fallen to 0% for the first time since 2007. Zschaepitz points out that yields could drop to negative percentages at any time in the near future, while the Japanese government continues to print money on a massive scale.

Uh oh, Japan's 10-year government bond yield has dropped to 0%, and it could go negative at any time as the Bank of Japan continues to print money like crazy.

In traditional finance, yield refers to the return on an investment, usually expressed as an annual percentage. Therefore, a zero yield in Japan means that the profit rate or return to investors is zero.

Seeking alternatives

As the Japanese government continues to print large amounts of money, the yen's inflation rate is likely to increase proportionally, and the yen's price is likely to fall in the medium term. Analysts expect that the performance of Japan, the largest Bitcoin exchange market, may affect Bitcoin prices.

Bitcoin price increases are often accompanied by economic instability and economic uncertainty in large Bitcoin markets. For example, when the Chinese Bitcoin exchange market was the largest Bitcoin exchange market in the world by trading volume, the depreciation of the RMB caused by the rising inflation rate of the US dollar would lead to a rise in Bitcoin prices.

In other words, when the RMB weakens, traders and investors in the region seek alternative wealth management products (WMPs) and safe-haven assets such as Bitcoin.

41% of the global Bitcoin exchange market is affected

According to data provided by various Bitcoin market data providers including Brave New Coin, Japan’s Bitcoin exchange market currently accounts for 41% of the global market share, followed by the United States at 30.6%.

Therefore, Japan's economic instability and the weakness of the yen will have a significant impact on the demand for Bitcoin in the local market.

In the past week, the daily trading volume of the Japanese Bitcoin exchange market has increased significantly, and the price of Bitcoin has surged from $1,175 to $1,257. The Japanese Bitcoin price has risen by 1.47% in the past 24 hours, which also shows that the demand for Bitcoin is continuing to grow.