The Japanese yen fell to 160.16 per dollar on August 28, giving up more than half its gains since July’s intervention. Japan spent approximately 15.4 trillion yen, equivalent to $97 billion, to support its currency between July 30 and August 26. This campaign included a rare joint action with the United States on July 31. Bitcoin briefly fell below $77,000 after Federal Reserve chair Kevin Warsh’s remarks on US interest rates. A sharp rise in the yen could trigger massive sell-offs in Bitcoin, as happened in August 2024 when the reversal of yen-funded carry trades amplified losses in Bitcoin and Ethereum by up to 20%.
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