According to The Kobeissi Letter, Japan's core CPI inflation (excluding fresh food) surged to 3.7% year-over-year in May 2025, marking the fastest pace since January 2023 and the sixth consecutive month above 3%. Notably, rice prices skyrocketed by 102% year-over-year, fueling concerns over persistent inflation. This sustained inflationary pressure could push the Bank of Japan toward policy tightening, which may strengthen the yen and trigger volatility across global risk assets, including Bitcoin (BTC) and other cryptocurrencies, as investors adjust to shifting liquidity conditions. Source: @KobeissiLetter (Twitter, June 20, 2025).

According to The Kobeissi Letter, Japan's Consumer Price Index (CPI) inflation climbed to 3.6% in April 2025, with a 0.4% month-over-month increase and CPI excluding fresh food jumping 0.7%, marking the sharpest monthly gain since October 2023. The annual inflation rate accelerated from 3.2% to 3.5%, the fastest since January 2023 (source: The Kobeissi Letter, May 25, 2025). This pronounced inflation surge raises concerns of stagflation, which may impact the crypto market by increasing volatility in yen-denominated trading pairs and driving investor interest toward digital assets as alternative hedges.