New ATH for Bitcoin is Here as Spot ETF Inflows Surge
Bitcoin hits an ATH against the Japanese Yen, and is closer in Euro to that mark than in USD. Plus, the great bond bear trap of 2024.
Bitcoin Hits ATH in Japanese Yen
Bitcoin is a Veblen good, meaning the demand goes up as price goes up. That is the inverse of a typical good where demand falls as price rises. But which price are we talking about? Bitcoin has a price in many currencies. Its Veblen good status applies to each of them, with the effect on demand proportional to the size of that currency.
Sometimes we see charts of bitcoin in Turkish Lira (bottom right) or Argentine pesos, because those currencies are quite inflationary. But those currencies are relatively small compared to the big four (USD, EUR, JPY, GBP). When bitcoin breaks an ATH in those currencies we should expect that to have a noticeable effect on demand, and that is what we saw today with bitcoin priced in Japanese yen breaking its previous ATH.
Interestingly, the Nikkei 225 is also hitting a new ATH, along with bitcoin.
But not all is well in Japan. It was recently reported that they entered an official recession in Q4 last year. GDP for Q4 was -0.4% compared to Q4 in 2022, following a -3.3% Q3. Quarter-over-quarter growth was also negative, with the economy shrinking 0.1% from Q3 and Q3 shrinking 0.8% from Q2.
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