After an impressive rebound during the first few days of 2026, Bitcoin (BTC) price has been rejected around $94k. The flagship coin dropped below $91k on Wednesday, January 7, amid rising midterm fear of further bearish impact from the unwinding Yen carry trade.
Bitcoin and the wider altcoin market are facing heightened short-term selling pressure as the Yen carry trade continues to unwind. The recent interest rate hikes by the Bank of Japan have caused investors to shift risk-off on crypto assets due to the unwinding of the Yen carry trade.
The liquidity outflow from Bitcoin and altcoins to repay loans denominated in Yen weighed down on midterm bullish sentiment. During the December schedule, the BoJ increased its rate to 0.75%, thus making Yen loans less profitable at the global scale.
According to trading data from TradingView, BTC price closed in the fourth quarter of 2025 in a bearish outlook, amid strong global fundamentals, thus correlated with the Yen.
Source: X
Bitcoin’s liquidity outflow is clearly visible through the $243 million in cash outflows from the U.S. spot BTC ETFs.
According to Tom Lee, a popular Wall Street analyst heavily invested in crypto, the parabolic rise of Gold in 2025 is an indicator of crypto bullish sentiment in 2026. According to Bloomberg data, the U.S. dollar was recently overtaken by Gold as the dominant global reserve.
Source: X
With Bitcoin adopted globally as a digital Gold, the flagship coin is well-positioned to rally exponentially in the coming months. Moreover, the ongoing Quantitative Easing (QE) by the Federal Reserve will trigger a risk-on investment mode in the near future.
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
All opinions and insights shared represent the author's own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
The Zcash Foundation has defended the Zcash (ZEC) network as independent from any third party.…
Solana is one of the most closely watched cryptos since its breakout in 2021, attracting…
Morgan Stanley, a top-tier bank with more than $1.8 trillion in assets under management, has…
SharpLink (SBET) has deployed $170 million worth of Ethereum for restaking services. The Ethereum treasury…
World Liberty Financial is gaining immense traction yet again as the price surges above 10%…
The broader cryptocurrency market remains mixed, with total market value standing at about $3.1 trillion,…
