Spark

Viewpoint: Japan's core inflation higher than expected sparks discussions on interest rate hikes, which may pose a threat to the cryptocurrency market

ChainCatcher news, according to CoinDesk, Japan's latest core inflation data has exceeded market expectations, sparking discussions about the possibility of the Bank of Japan (BOJ) raising interest rates, which could impact risk assets including cryptocurrencies. The data shows that Japan's core CPI rose 3% year-on-year in February, down from 3.2% in January but still above the market expectation of 2.9%. Meanwhile, Japan's overall CPI fell from 4% to 3.7%, but still far exceeds the BOJ's target inflation rate of 2%.Since November 2024, Japan's inflation rate has consistently been higher than that of the United States, currently exceeding by nearly 100 basis points, marking the largest gap since 2015. Coupled with the wage pressure from the "Shunto" spring labor negotiations, market expectations for a BOJ interest rate hike have intensified. The anticipation of a rate hike has strengthened the yen, but if the yen appreciates significantly, it may trigger market risk aversion, thereby putting pressure on risk assets like Bitcoin.As of the time of writing, the USD/JPY exchange rate is 149.22, having rebounded nearly 300 basis points since March 11, indicating a short-term weakening of the yen. However, the yield spread between U.S. and Japanese 10-year government bonds has narrowed, with Japanese 10-year bond yields maintaining above 1.5% and 30-year bond yields breaking 2.5%, both at multi-decade highs, which may support a stronger yen. The market is focused on the future direction of BOJ policy and its impact on global financial markets.

The audit of the U.S. gold reserves has sparked controversy, with the crypto community supporting BTC as a means of value storage

ChainCatcher news, according to Cointelegraph, U.S. Senator Rand Paul called yesterday for an audit of the Fort Knox gold reserves led by Elon Musk's Department of Government Efficiency (DOGE) to verify whether it actually holds 147.3 million ounces (4,600 tons) of gold from the U.S. Treasury, sparking a debate about the transparency of Bitcoin compared to traditional assets and financial trust.The Fort Knox gold has not been audited for 50 years since 1974, primarily because the U.S. government has refused external audits on the grounds of national security, while its gold reserves are seen as a symbol of national credit, and public audits could trigger market volatility and a crisis of trust. Bitcoin supporters, including Senator Cynthia Lummis, stated: "Bitcoin solves this problem. Bitcoin reserves can be audited at any time through basic computers, year-round." Unlike physical gold, which requires external audits, Bitcoin allows anyone to verify ownership, supply, and transactions through the blockchain.Riot's research director Pierre Rochard said: "Gold requires trust in the auditor, while Bitcoin allows anyone to be an auditor." Bitcoin cannot be forged, whereas gold can. Although the U.S. has the largest gold reserves in the world, incidents of fake gold bars have occurred in recent years. In 2019, the CEO of Swiss refinery Valcambi admitted that counterfeiting technology has become increasingly sophisticated, suggesting that thousands of fake gold bars may go undetected. In contrast, Bitcoin cannot be forged, with a fixed total supply of 21 million coins, and its smallest unit, "satoshi," can be tracked on-chain. Bitcoin advocate Max Kaiser wrote in 2018: "Bitcoin is the most perfect hard currency humanity has ever known. Holding Bitcoin is a declaration of liberation from tyranny and government intervention, achieving individual sovereignty."
ChainCatcher Building the Web3 world with innovators