Investors in Bitcoin and other cryptocurrencies are on edge as concerns about Japan’s yen carry trade unwinding increase once more in the midst of a heated inflationary market.
Investors in Bitcoin and other cryptocurrencies are keeping a careful eye on the Japanese market as core consumer inflation jumped by 3.2% in January, which may force the central bank to raise interest rates shortly. In August 2024, a significant crypto market meltdown was caused by the unwinding of Japan’s yen carry trade.
Bitcoin price action moving ahead
With a market valuation of $1.95 trillion, the price of bitcoin has increased by 1.3% during the past day to $98,388.43. Bitcoin has been trading around the $90,000-$100,000 region for a while now, with little discernible movement on either side.
A crucial level that Bitcoin has to sustain in order to preserve its bullish market structure has been determined by renowned cryptocurrency analyst Rekt Capital. The analyst believes that in order for Bitcoin to continue utilizing the higher low as a support level, it must post a weekly close above about $97,000.
In addition, within the last two months, the demand for Bitcoin has drastically decreased. Julio Moreno, head of research at CryptoQuant, commented on the news, saying: “If Bitcoin hasn’t rallied to fresh highs, it’s because demand has cooled down significantly since December.”
Altcoins to see some bounce back?
The altcoin market had a significant decline in early 2025 after a robust surge in 2024. Nonetheless, market observers anticipate a rally in the future after the current consolidation.
Crypto expert Patrick H has pointed to signals of possible development in the altcoin market, highlighting fresh activity in the space. As the horizontal channel pattern, which was presented last week, continues to function well, the analyst claims that cryptocurrencies are beginning to show signs of life.
Patrick pointed out that the market has honored the channel’s support and resistance levels, confirming the pattern’s accuracy. He went on to say that the first indication of positive momentum for cryptocurrencies would be a breakthrough from the horizontal channel, which would encourage traders to keep a careful eye on the market for more developments.
Japan’s Yen carry trade unwinding
Recently, there have been discussions of unwinding the Japanese yen carry trade since Japan’s inflation has accelerated faster than anticipated, which may force the Bank of Japan to raise interest rates even more. The government reports that total inflation reached its highest level in two years, rising from 3.6% to 4%. The NLI Research Institute’s chief of economic research, Taro Saito, stated:
“Japan’s core inflation is likely to remain around 3% in the first half of this year. The BOJ will keep mulling the timing of its next rate hike, rather than worrying about whether they need it.”
The USD/JPY pair is falling below 150 levels and reaching new lows as the Japanese yen strengthens. As the USD/JPY breaks the crucial 150.00 barrier, analyst James Stanley issues a warning about possible bear traps. He points out that there may be more incentive for carry trades to wind down if further data shows the US currency has peaked.
Veteran economist Peter Schiff commented on this event, saying: “The yield on the 10-year JGB is now 1.45%.” The dollar/yen is on the verge of dropping below 1.50. Few people have recognized the warning sign that it is occurring as gold continues to reach new record highs. A financial catastrophe of epic proportions is about to occur.
Litecoin txs surge 243% in 5 months amid ETF hype: Santiment
As Canary’s spot Litecoin ETF moved to be ready for its possible approval, the price of Litecoin increased by more than 8%.
As exchange-traded fund issuers have been moving to launch their planned Litecoin ETFs in the US, daily transactions on the Litecoin network have reached $9.6 billion.
According to Santiment on February 21, the market capitalization of Litecoin (LTC) grew by 46% between February 2 and February 19, indicating heightened investor interest. It further said that a portion of this expansion originates from “its strong rise in network utility, which has been processing $9.6 billion in daily transaction volume over the past 7 days.”
In late August, Litecoin’s daily transaction volume was around $2.8 billion; therefore, the current values indicate a 243% increase in just five months. Furthermore, since early November, LTC values have doubled, surpassing the 42% gains made by the larger cryptocurrency market during the same time frame.
“There is clear growing excitement around a potential Litecoin ETF, 13 months after Bitcoin’s first ETFs were approved by the SEC,” said Santiment.
On February 19, the Securities and Exchange Commission acknowledged a rule modification that would allow the CoinShares spot Litecoin ETF to be listed on the Nasdaq.
On February 20, however, the Litecoin ETF from Canary Capital was listed on the Depository Trust and Clearing Corporation (DTCC) system under the ticker LTCC.
“It’s a key preparatory step for the fund’s potential launch,” the Litecoin Foundation said, adding that the DTCC is an important component of the global financial markets and handles billions of dollars in securities transactions every day.
🚨BREAKING: @CanaryFunds Litecoin ETF has been listed on the Depository Trust and Clearing Corporation system under the ticker LTCC! The DTCC is key part of global financial markets and processes trillions of dollars in securities transactions each day. pic.twitter.com/pzkyiBAGTI
— Litecoin Foundation ⚡️ (@LTCFoundation) February 21, 2025
Bloomberg ETF analyst Eric Balchunas cautioned that it doesn’t mean the product is approved or ready to start trading, “but it does show the issuer is making preparations for when it is.” He added that the analysts’ odds for approval this year were still at 90%.
In reaction to the DTCC listing, LTC prices surged by around 8.5%, rising from an intraday low of $127 to $138 before a minor decline on February 21.
Over the last two weeks, the asset has increased by about 30%, outpacing Bitcoin (BTC), which has stayed firmly range-bound since plunging back into five digits in early February.
XRP price eyes new ATH as Grayscale’s XRP ETF filing enters US SEC review
The SEC is reviewing Grayscale’s XRP ETF application, and a decision is anticipated by October 18, 2025. Despite increasing approval probabilities, XRP price trends are still positive.
Since Grayscale’s XRP exchange-traded fund (ETF) registration was formally filed to the Federal Register by the U.S. Securities and Exchange Commission (SEC), the price of XRP has been rising.
With this action, a 240-day review period begins, during which the agency will choose whether to accept or deny the application.
Grayscale’s XRP ETF filing under SEC review
Following its publication in the Federal Register, Grayscale’s proposed XRP ETF was officially subject to the SEC’s review procedure. This gives the agency until October 18, 2025, to decide. Stakeholders can provide input during the 21-day public comment period included in the process.
The SEC will then examine the plan and evaluate investor protections, market risks, and compliance with securities laws.
Amid rumors of a delay in the Ripple v. SEC case, XRP’s legal categorization continues to be a crucial consideration in the ETF’s clearance. The question of whether XRP qualifies as a security has been the subject of an unresolved SEC lawsuit against Ripple Labs. Citing worries about market manipulation, the regulator has traditionally been more cautious with altcoin ETFs than with Bitcoin ETFs.
XRP price to breach $3 resistance
The price of XRP was down about 1% intraday at $2.66 as of the time of writing. The asset backed by Ripple fell as low as $2.64 and as high as $2.74.
Notably, traders are expecting a possible breakthrough since the coin’s price has responded fairly favorably to the ETF developments. Analysts are keeping an eye out for a rise above $3.00 as the token is already challenging important resistance levels. Clearing this level, according to some, would portend a bigger surge.
Crypto traders have exchanged opinions about how the price of the cryptocurrency has changed. CasiTrades said on X that “XRP continues to hold inside a corrective channel, which is typical for a Wave 4,” indicating that an all-time high was imminent. Dark Defender, another trader, predicted that the price of XRP may rise to $2.77 before touching $3.
Speculation over the use of XRP for transactions by big financial institutions has also affected market sentiment. Although no formal confirmation has been given, reports indicate that Bank of America may be using XRP for internal payments.
US SEC’s stance on crypto regulation
Together with Grayscale’s submission, the SEC has been examining other XRP ETF applications. The agency accepted proposals from asset managers WisdomTree, Canary, and CoinShares on February 19. These applications were filed via Cboe BZX and Nasdaq, among other exchanges.
In recent months, the SEC’s strategy for regulating cryptocurrencies has drawn criticism. The agency’s action against Binance was temporarily put on hold under the current government, which led some experts to speculate that regulatory pressure on cryptocurrency companies would lessen. Investors are thus optimistic that this change may benefit Ripple and raise the price of XRP to a new all-time high.
The government of President Donald Trump has been perceived as being more pro-crypto, and his recent social media posts have increased hope. He posted an article about Ripple Labs’ growth in the US, pointing out that XRP had a spike after the 2024 presidential election.
XRP ETF approval odds
With betting odds of 81% right now, Polymarket has increased the likelihood that an XRP ETF would be approved. In addition to the increasing desire for institutional investment in the asset, Brazil just became the first nation to authorize an XRP spot ETF, which might drive the price of XRP to a new all-time high.
Though optimistic, other analysts advise caution. Jackson Denka, CEO of Azura, pointed out that XRP has a history of sharp price drops after sharp price spikes.
“Until we see real adoption and actual progress of their blockchain, it is hard to make the claim that this price is sustainable,” Denka said.
