๐ฏ๐ต BREAKING: Bank of Japan Raises Interest Rates to 0.75% โ Highest in 30 Years
The Bank of Japan (BOJ) has increased its policy rate by 25 basis points, marking the highest level in roughly three decades. This move signals a gradual normalization of monetary policy in Japan.
๐น Why this matters globally:
โข Japan has historically been a major source of cheap liquidity. Low yen borrowing rates encouraged investors to move capital into risk assets, including stocks, bonds, gold, and crypto.
โข Higher rates make yen borrowing more expensive, which can reduce global liquidity and impact capital flows into risk assets.
โข Lower liquidity often correlates with higher volatility and pressure on risk markets, including crypto.
๐ Crypto market context:
โข Cryptocurrencies are sensitive to global liquidity conditions.
โข Reduced capital flows may increase volatility and temporarily constrain demand, but the timing and magnitude of any impact are uncertain.
โข This is macro context, not a direct signal to buy or sell any asset.
๐ก Key takeaway:
Monitor global liquidity, policy signals, and risk sentiment. Macro developments like BOJ rate changes can influence crypto markets indirectly, but markets respond to multiple factors, not a single event.
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