Gold Dominates, Bitcoin (BTC) Slumps on Yen Intervention Fears, Why?

Updated

January 27, 2026

Gambar Gold Dominates, Bitcoin (BTC) Slumps on Yen Intervention Fears, Why?

Jakarta, Pintu News – Fiscal instability and the strength of the yen have sparked concerns in global markets, causing risky assets such as Bitcoin and Ethereum to decline. In the past 24 hours, Bitcoin (BTC) fell 0.8% to below $88,000, while Ethereum (ETH) lost more than 1.6% to nearly $2,900. The CoinDesk 20 (CD20) index also saw a decline of 1.54%.

Yen Intervention and Its Impact on Global Markets

The Japanese yen saw significant gains of over 1.4% against the US dollar, following a statement from Prime Minister Sanae Takaichi asserting that Japan will take all necessary measures to address abnormal speculative movements.

Although Takaichi did not specifically mention any market movements of concern, the country’s 10-year bond yield had reached a 27-year high before dropping slightly. Traders also interpreted the recent “interest rate check” by the New York Federal Reserve Bank as a possible sign of coordinated action with Japan. This pushed investors away from riskier assets as the yen carry trade reversed.

Also Read: 5 Key Facts on Silver vs Gold Supply Gap and Its Impact on Crypto & Commodity Assets

Bitcoin (BTC) Lags, Gold Dominates

Capital doesn’t seem to be moving to Bitcoin (BTC), but rather to gold. The precious metal hit over $5,000 per ounce for the first time today, and is currently at $5,090. According to Greg Cipolaro, head of global research at NYDIG, Bitcoin’s (BTC) always-on nature, deep liquidity, and instant settlement may be holding it back.

In periods of stress and uncertainty, liquidity preferences dominate, and these dynamics hurt Bitcoin (BTC) more than gold. Blockchain data also shows internal weakness. CryptoQuant reported that older Bitcoin (BTC) holders started selling at a loss for the first time since October 2023.

Outlook: Focus on Federal Reserve Meeting

Markets will be watching this week’s Federal Reserve meeting, where interest rates are expected to remain, however guidance from Chairman Jerome Powell will be key. Additionally, the risk of a US government shutdown, currently estimated at 79% on Polymarket and nearly 78% on Kalshi, adds a layer of uncertainty ahead of a week that will be filled with earnings reports from major tech companies and guidance sharing.

The Future of Crypto and Gold Markets

With the global situation full of uncertainties, investors seem to prefer to invest in assets that are considered safer such as gold. Meanwhile, Bitcoin (BTC) and other cryptocurrencies are still struggling to gain confidence as a hedge against market turmoil.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying and selling Bitcoin and other crypto asset investments are the responsibility of the reader.