PANews reported on March 21 that according to CoinDesk, Japan's core inflation rose 3% year-on-year in February, which was lower than 3.2% in January, but still higher than the market expectation of 2.9%. The overall CPI dropped from 4% to 3.7%, still far exceeding the central bank's target of 2%. Currently, Japan's inflation level is nearly 100 basis points higher than that of the United States, the largest gap since 2015. In addition, the Shunto wage negotiations pushed up wages, and the market's expectations for the Bank of Japan (BOJ) to raise interest rates have increased.

As a stronger yen usually leads to increased risk aversion in the market, the crypto market may face pressure. As of now, the USD/JPY is trading at 149.22, having fallen nearly 300 points since March 11. The yield spread between the 10-year U.S. and Japanese government bonds has narrowed, with the 10-year Japanese government bond yield rising to more than 1.5% and the 30-year interest rate breaking through 2.5%, both at multi-decade highs, reinforcing the trend of a stronger yen. If the yen continues to appreciate, it may trigger a global adjustment in risky assets, which may put pressure on the crypto market, similar to the market risk aversion in August 2023.