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Bitcoin reserves have sparked intense controversy, with countries deeply divided on their potential. As Japan faces mounting economic pressure, could its struggles provide the perfect case study? The debate over Bitcoin [BTC] reserves is dividing the market. Some see it as a crucial hedge against the dollar’s volatility, while others remain deeply cautious, concerned about the speculative risks tied to it. The divide is so sharp that even the Fed and the Trump administration are at odds, each taking a starkly different stance on the issue. Now, Japan is joining the conversation, raising concerns about the potential risks of including Bitcoin in its foreign reserves. But here’s the catch: The Japanese yen has hit a five-month low against the U.S. dollar, joining a growing list of G20 currencies struggling to keep up with the dollar’s dominance. So, will Japan’s cautious approach to Bitcoin reserves be seen as a missed opportunity? Or will this economic pressure push Japan – and other nations – to finally recognize BTC as a serious alternative? Unraveling Japan’s economic storm in 2025 The recent FOMC rate cut triggered a ripple effect across markets, sparking an ‘unexpected’ twist. On the 18th of December, as the Fed’s decision made headlines, the U.S. dollar index surged to a staggering two-year high of 108.54. The fallout was quick and brutal. Bitcoin plunged 14% in just three days, while global currencies crumbled under the pressure. The Japanese yen wasn’t spared, plunging to a five-month low of 158 per dollar. Source : Trading Economics In immediate response, the Bank of Japan (BOJ) held its ground, keeping interest rates steady. But the real storm may be ahead. The long-term impact of a surging dollar could be far-reaching, with inflationary pressures set to climb.  The signs are already here. Japan’s annual inflation rate spiked…

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Filed under: News - @ December 29, 2024 7:03 am