Observing changes in volatility on the cryptocurrency market once again showed an interesting trend: the performance of the BTC-JPY pair exceeded similar values for BTC-USD for the first time since 2022. According to Kaiko analysts, the Japanese elections held in October unexpectedly alarmed investors. This led to an increase in JPY volatility.Since the beginning of the year, the volatility of BTC-USD has mostly exceeded that of BTC-JPY, which is logical given the traditional popularity of the dollar as a reserve currency for cryptoassets. However, after the August sell-off, both currency pairs showed declining values. Then, the dynamics of BTC-JPY after the elections in Japan went upward, for the first time overcoming the indicators of BTC-USD.The change of the trend is probably related to the expectations of market participants about the change in the economic policy of Japan after the elections. Increased yen volatility was caused by instability in the currency market, which, in turn, affected BTC-JPY trading. Investors worried about possible changes, which led to more frequent fluctuations in the bitcoin exchange rate when paired with the local currency.
According to experts, the upcoming US election may also have a similar impact on BTC-USD volatility. Analysts suggest that the victory of one of the candidates with a radical economic program may provoke a new rally for BTC-USD, although so far the level of uncertainty around the dollar remains lower than that of the yen. The
growth of BTC-JPY volatility also highlights the role of Japanese investors who actively use bitcoin as an asset to diversify their investments. Despite certain risks associated with the instability of the national currency, BTC is becoming an increasingly attractive instrument for protection against inflation and currency fluctuations.Author: Camila Russo is an experienced journalist with a strong focus on crypto news.
