“The 90-day correlation between bitcoin and JPY has risen to a record high of over 0.85.”, — write: www.coindesk.com
The 90-day correlation coefficient between BTC and Pepperstone’s JPY index has risen to 0.86, the highest ever, according to data source TradingView.
That high correlation means the two assets have been moving in the same direction so tightly that 73% of BTC’s price swings over the past 90 days mirror moves in the yen. The 73% figure – known as the coefficient of determination – comes from squaring the correlation coefficient and shows a model’s “goodness of fit” as an intuitive percentage.
Pepperstone’s JPY Index, known as JPYX, is a currency index contract for difference (CFD) that measures the Japanese Yen’s strength against a basket of four major currencies, EUR, USD, AUD, and NZD.
The tight correlation between bitcoin and yen means the once-independent BTC is now under the shadow of Japanese currency swings, tanking or surging with the yen, as it has done over the past 90 days. In other words, for now, BTC seems to have lost its appeal as a portfolio diversifier, turning what was once a unique “digital gold” hedge into a doubled-down bet on yen.
That said, traders should note that correlations between cryptocurrencies and traditional assets like stocks and currencies are often transient.
BTC and JPY have been tied at the hip since October 2025. (TradingView)
BTC peaked in early October and took a beating in the following two months, as the JPY index extended its downtrend, with sell-offs in both stalling after mid-December.
Moreover, the yen has been in a downtrend since April last year, as concerns about the fiscal debt sustainability lifted Japanese government bond yields. With the debt-to-GDP ratio of 240%, Japan is one of the most indebted nations in the world, although much of that debt is held by domestic investors.
Japan’s elevated debt traps its central bank between a rock and a hard place: raising interest rates spikes debt-servicing costs and worsens the fiscal mess, while keeping rates low risks a full-blown yen slide.
Some observers argue that the fiscal crisis is already unfolding in currency markets, with a sharply weaker yen, and that only a potential US recession will offer Japan any breathing room.
KuCoin captured a record share of centralized exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the broader crypto market.
- KuCoin recorded over $1.25 trillion in total trading volume in 2025equivalent to an average of roughly $114 billion per monthmarking its strongest year on record.
- This performance translated into an all-time high share of centralized exchange volumeas KuCoin’s activity expanded faster than aggregate CEX volumeswhich slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly spliteach exceeding $500 billion for the year, signaling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activityreinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activityindicating structurally higher user engagement rather than short-lived volume spikes.
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Miners that look like infrastructure companies may win, while those that rely on pure mining margins face a tougher 2026.
- Nvidia CEO Jensen Huang announced the Vera Rubin platform, which promises five times the AI computing power of previous systems, is now in full production.
- The Rubin platform will feature 72 GPUs and 36 CPUs per server, with the ability to scale into larger systems containing over 1,000 chips.
- The AI boom is reshaping the crypto market, with bitcoin miners pivoting to offer infrastructure services to AI customers, impacting data-center space and costs.
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