Japan’s Banks May Be Buying Bitcoin Behind the Scenes—Analyst Explains Why

• Japanese institutions may be quietly shifting funds into Bitcoin as debt pressures mount internally.
• Rising bond yields and the upcoming BOJ meeting could trigger a new wave of crypto demand.

Japanese financial institutions may be increasing their exposure to Bitcoin, according to recent analysis by Jeff Park, Head of Alpha Strategies at Bitwise. He points out that pressures within Japan’s financial system, combined with changing global conditions, may be prompting some of the country’s largest players to shift capital into cryptocurrency.

Japan will be an incredible player for Bitcoin adoption, Park said.

Japan holds over $1.1 trillion in foreign reserves and roughly $8.7 trillion in pensions and life insurance. Even a small adjustment within these reserves toward Bitcoin could affect global markets. Park argues that such a move would carry weight given Japan’s standing in global finance.

This development comes ahead of the Bank of Japan’s next policy meeting on June 16–17, 2025. Observers are watching for any sign that the BOJ could adjust its approach to bond purchases or inject more liquidity into the system. These types of policy decisions tend to influence capital flows into assets like BTC.

Bond Market Pressure and Institutional Shifts

Japanese bond yields are continuing to rise, with the 30-year government bond yield now at 3.185%. This increase reflects pressure in the domestic debt market and has drawn attention toward other asset classes. Bitcoin recently reached a high of $112,000, backed by institutional demand and growing interest in alternatives as concerns over debt levels rise.

Arthur Hayes, BitMEX co-founder, suggested the Bank of Japan may resume quantitative easing at its mid-June meeting. Historically, this kind of move has been followed by rallies in Bitcoin. His view implies a possible repeat of past behavior, where liquidity injections helped push crypto prices higher.

Even though Bitcoin recently dipped to around $104,000, it has stayed above $100,000, which some analysts interpret as a sign that long-term investors—including institutional players—are continuing to buy. The current price level points to growing interest in Bitcoin as a hedge against broader financial risks.

Japan–U.S. Reserve Shift Could Trigger Bitcoin Surge

Japan’s position in global credit markets, supported by the yen carry trade, lends it influence in any shift involving cross-border investments. Jeff Park points out that Japan’s financial position and large asset base could bring it to the front if Bitcoin gains acceptance as a neutral reserve.

If Japan aligns efforts with the U.S. on changing reserve strategies, this might start a new pattern among central banks. Park noted that even a small reallocation into Bitcoin from these funds would be enough to move markets. This wouldn’t just influence prices—it could also affect how institutions in Asia and elsewhere act.

Analysts remain positive about Bitcoin’s long-term direction. Some estimates place future prices near $200,000, especially if global debt risks worsen and central banks look elsewhere for reserves. Current buying trends, along with broader financial signals, support these views, particularly if Japanese institutions are involved without drawing attention.