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.