According to The Kobeissi Letter, Japan's CPI inflation excluding fresh food surged to 3.7% year-over-year in May 2025, marking the fastest pace since January 2023 and the sixth consecutive month above 3%. Rice prices jumped 102% year-over-year, indicating strong inflationary pressures (source: The Kobeissi Letter, June 20, 2025). Persistent inflation may push the Bank of Japan toward policy tightening, causing volatility in Japanese equities and increased interest in crypto assets as alternative hedges. Traders should monitor yen weakness and capital flows to Bitcoin (BTC), Ethereum (ETH), and other major cryptocurrencies for potential opportunities.

According to The Kobeissi Letter, Japan's core CPI inflation (excluding fresh food) surged to 3.7% year-over-year in May 2025, marking the fastest pace since January 2023 and the sixth consecutive month above 3%. Notably, rice prices skyrocketed by 102% year-over-year, fueling concerns over persistent inflation. This sustained inflationary pressure could push the Bank of Japan toward policy tightening, which may strengthen the yen and trigger volatility across global risk assets, including Bitcoin (BTC) and other cryptocurrencies, as investors adjust to shifting liquidity conditions. Source: @KobeissiLetter (Twitter, June 20, 2025).

According to WallStreetBulls, Japan's Nationwide CPI for April has been reported at 3.6%, falling short of the forecasted 3.7%. This slight deviation from expectations may influence market sentiment and trading strategies, particularly in the cryptocurrency sector. Lower-than-expected inflation could lead to a more dovish stance from the Bank of Japan, potentially impacting the yen and global currency markets. As a result, traders might see increased volatility in cryptocurrency prices, especially for Bitcoin and Ethereum, as they react to shifts in fiat currency valuations.