Yen Strengthens, Bitcoin Tumbles to Three-Month Low

Bitcoin plummeted to a three-month low of $88,500 on Tuesday as global risk sentiment worsened. The cryptocurrency's decline coincided with the strengthening Japanese yen, which has gained nearly 6% over the past six weeks.

The yen's surge has sparked concerns about broader market stability, evoking memories of last summer's market turmoil when a rate increase by the Bank of Japan triggered widespread risk aversion.

Market observers point to the correlation between money supply contractions and subsequent Bitcoin price movements. Andre Dragosch, head of research Europe at Bitwise, noted that 'the money supply has bottomed out recently, meaning BTC's price swoon may not last for long.'