Bitcoin Rises as Yen Weakens
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Bitcoin Rises as Yen Weakens
Bitcoin climbed above $87,000 after the Bank of Japan delivered a widely expected interest-rate hike, while the Japanese yen weakened against the U.S. dollar.
The BOJ raised its short-term policy rate by 25 basis points to 0.75%, the highest level in nearly three decades, marking another step away from years of ultra-loose monetary policy. Despite the move, the yen fell to around 156 per dollar, suggesting markets had already priced in the decision.
Bitcoin briefly rallied from near $86,000 to above $87,500 before stabilizing just above $87,000. The muted currency response reflected positioning: speculators had built long yen exposure well ahead of the announcement, limiting any post-decision surge.
Policymakers acknowledged that inflation has stayed above the 2% target, driven by import costs and firmer domestic prices, but stressed that real rates remain negative and financial conditions accommodative.
Concerns that higher Japanese rates would unwind yen carry trades and trigger a broad risk-off move proved overstated. Even after the hike, Japanese borrowing costs remain far below U.S. levels, reducing the likelihood of large-scale deleveraging.
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