Over the past 90 days, the correlation between Bitcoin and the yen has surged to above 0.85, the highest level on record.
This means that roughly 73% of Bitcoin’s price movements during this period can be explained by moves in the yen, a striking departure from BTC’s historical role as an independent asset.
This growing relationship became apparent when the two assets went through similar drawdowns in late 2025. Bitcoin reached its peak in October and then started to lose its value for the coming months, while the yen’s downfall continued as a result of the prevailing fiscal and monetary stresses in Japan.
The yen’s weakness comes largely from Japan’s structural challenges. The Bank of Japan has almost no flexibility in terms of its policies, with a debt-to-GDP ratio close to 240%.