Crypto Market News

06/16 06:22

Bitcoin rises after Bank of Japan hikes interest r

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The Bank of Japan raised its key interest rate by 25 basis points to 1 percent, the highest level since 1995, while signaling it may tighten further if inflation accelerates. Despite rate hikes typically weighing on risk assets, bitcoin rose from about $65,600 to $66,000 after the decision, as markets focused on the BOJ’s unexpectedly dovish stance on bond purchases. The BOJ’s move to pause its bond taper and fix monthly JGB purchases around 2 trillion yen is seen as an effort to cap long-term yields and support financial markets even as short-term policy tightens. Bitcoin $BTC$65,806.93 reversed early losses in the Asian session after the Bank of Japan raised interest rates to a 31-year high in its fight against inflation. The decision hit the wires around 3:19 UTC on June 16. The BOJ lifted its policy rate by 25 basis points to 1% from 0.75%, the highest level since 1995. The move aligned with market expectations but included hawkish hints of further tightening alongside measures to ease market concerns. The central bank highlighted upside risks to inflation, pointing to a faster-than-expected pass-through of higher oil prices into consumer goods amid geopolitical tensions. This suggests the BOJ stands ready to hike further if price pressures intensify. After decades of low inflation, Japan now faces rising costs, with wholesale prices climbing more than 6% year-over-year in May, the fastest pace in three years. Headline inflation stood at 1.4% in April, still below the BOJ’s 2% target. $BTC climbed from around $65,600 to $66,000 in the immediate aftermath. The Japanese yen weakened from 130 per U.S. dollar to 130.35 U.S. dollar. Rate hikes are typically bearish for risk assets like cryptocurrencies, especially from the BOJ, whose long era of ultra-low rates had supported global equity and bond bull markets. The positiv

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