The Bank of Japan raises interest rates to a 31-year high, yet the yen initially falls and BTC doesn’t collapse either.
The policy rate was raised from 1% to 1.25%, with the decision passed 7 to 2. The Bank of Japan also stated that it would continue to adjust interest rates based on economic, inflation, and financial conditions. After the decision was released, the USD/JPY actually moved toward around 156.9; meanwhile, Binance News in the same period showed that BTC climbed above 77,000 USDT, with a 24-hour gain of about 0.8%.
In this market, what was priced first was that “a rate hike was already expected.” A more important risk for crypto is that if the yen suddenly and rapidly appreciates, leverage used to buy risky assets with yen funding could be forced to unwind. So far, this chain reaction hasn’t been seen.
First, click on $BTC to view the real-time candlestick chart and trading volume. If the yen strengthens and both BTC and U.S. stocks pull back at the same time, that would be more consistent with a cross-market deleveraging starting.
$BTC #Bank of Japan hikes rates to a 31-year high
The policy rate was raised from 1% to 1.25%, with the decision passed 7 to 2. The Bank of Japan also stated that it would continue to adjust interest rates based on economic, inflation, and financial conditions. After the decision was released, the USD/JPY actually moved toward around 156.9; meanwhile, Binance News in the same period showed that BTC climbed above 77,000 USDT, with a 24-hour gain of about 0.8%.
In this market, what was priced first was that “a rate hike was already expected.” A more important risk for crypto is that if the yen suddenly and rapidly appreciates, leverage used to buy risky assets with yen funding could be forced to unwind. So far, this chain reaction hasn’t been seen.
First, click on $BTC to view the real-time candlestick chart and trading volume. If the yen strengthens and both BTC and U.S. stocks pull back at the same time, that would be more consistent with a cross-market deleveraging starting.
$BTC #Bank of Japan hikes rates to a 31-year high
