The post Why Institutional Capital Chooses Gold Over Bitcoin Amid Yen Currency Crisis appeared on BitcoinEthereumNews.com.

TLDR: Yen’s managed devaluation artificially strengthens the dollar, creating headwinds for Bitcoin price action. Gold has surged 61.4% while Bitcoin stagnates as institutions prioritize safety amid currency uncertainty. Institutional capital requires weaker dollar conditions before rotating from gold into cryptocurrency assets. Resolution of Japan’s currency crisis represents the macro clarity needed to unlock institutional Bitcoin flows.   The Japanese yen’s managed devaluation creates sustained macro uncertainty that keeps institutional investors positioned in gold rather than Bitcoin.  GugaOnChain’s analysis identifies this currency crisis as the primary obstacle preventing capital rotation into digital assets, with gold surging 61.4% while Bitcoin remains range-bound. Currency Manipulation Strengthens Dollar Against Risk Assets The yen’s planned collapse serves a dual purpose for Japanese policymakers. It reduces the burden of the world’s largest sovereign debt while unwinding massive carry trade positions.  However, this strategy creates unintended consequences for global markets. The weakening yen artificially props up the dollar index despite Federal Reserve caution. A resilient dollar historically acts as a brake on risk assets. Bitcoin typically thrives when the dollar weakens and liquidity conditions improve. The current environment offers neither a catalyst. Institutional portfolios require a weaker DXY to justify rotating from safe havens into volatile assets.  Source: Cryptoquant As long as the yen supports dollar strength, this rotation remains on hold. Capital managers see no urgent reason to abandon their gold positions. The mechanics are straightforward but powerful. The yen represents a significant component of the dollar index basket.  When it falls, the dollar rises regardless of domestic monetary policy. This dynamic traps Bitcoin in a holding pattern while gold attracts defensive flows. Systemic Tail Risk Justifies Conservative Positioning Markets face a delicate equilibrium where sharp yen movements could trigger widespread instability.  This tail risk justifies continued allocation to traditional safe havens. Institutional treasurers cannot ignore…

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Filed under: News - @ January 18, 2026 4:11 am