Bitcoin (BTC) experienced a 3.5% drop on Monday, potentially influenced by the election of Shigeru Ishiba as Japan's new prime minister, who is seen as a monetary policy hawk. However, this narrative was challenged as the Japanese yen weakened across the board. The USD/JPY pair and the AUD/JPY pair both rose, suggesting continued yen depreciation and a risk-on environment. Market analysts believe that other factors may have contributed to BTC's decline, including overbuying and a natural pullback after a significant rally. Looking forward, the performance of the Japanese yen will be important to watch, as it is considered a "U.S. recession trade."



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