Analysis: Signs of further interest rate hikes in the yen suppress BTC's upward momentum

ChainCatcher news, according to CoinDesk, Bitcoin has rebounded above $59,000, but the momentum has weakened due to hints of further interest rate hikes in Japan. However, according to the CoinDesk20 index, BTC is still up 1% in the past 24 hours, while the broader cryptocurrency market has risen by about 0.9%.

A series of U.S. economic data will be released this week, starting with the manufacturing Purchasing Managers' Index (PMI) for August, published by the Institute for Supply Management (ISM) later on Tuesday. Weak data will strengthen the case for the Federal Reserve to cut interest rates, which is expected to boost riskier assets like cryptocurrencies.

Bank of Japan Governor Kazuo Ueda reiterated that the central bank will raise interest rates further if the economy and inflation develop as expected. Ueda stated that the economic environment remains accommodative, and even after the benchmark borrowing cost was raised at the end of July, the inflation-adjusted rate remains negative. This is the first time in decades, triggering a closure of yen carry trades and leading to instability in risk assets.