According to The Kobeissi Letter, Japan's rice prices surged by 98.4% year-over-year in April 2025, marking the largest monthly increase since 1971, while energy prices also climbed 9.3% following the phaseout of government subsidies (source: The Kobeissi Letter, May 25, 2025). This sharp acceleration in food and energy inflation signals heightened economic uncertainty and could drive increased retail and institutional interest in cryptocurrency as a hedge against yen devaluation and inflationary pressures. Crypto traders should monitor Japanese economic data closely, as further inflation may boost Bitcoin and stablecoin demand among Japanese investors seeking alternatives to fiat assets.

According to The Kobeissi Letter, the Bank of Japan now owns 52% of all domestic government bonds, significantly outpacing life insurers (13.4%), banks (9.8%), and pension funds (8.9%). Bloomberg reports that the Japanese government holds $7.8 trillion in debt. For crypto traders, this central bank dominance signals ongoing yen liquidity and potential devaluation risks, which may drive increased interest in Bitcoin and stablecoins as alternative stores of value and hedges against currency depreciation. Market participants should monitor BOJ policy shifts closely, as changes could trigger volatility in both traditional and crypto markets. (Source: The Kobeissi Letter, Bloomberg)