On Friday, Bitcoin’s price saw a notable increase, rising approximately 2.5% to reclaim the $88,000 level, despite the Bank of Japan raising its interest rate to around 0.75%, the highest in nearly 30 years. Investors viewed this move positively for cryptocurrencies and other risk assets, interpreting the rate hike as a limited tightening amid Japan’s ongoing financial and political challenges. This rate increase marks the end of Japan’s long-standing ultra-low interest rate policy since the mid-1990s. Analysts suggest that further rate hikes are unlikely due to the risk posed by increased debt servicing costs on the country’s $140 billion fiscal stimulus. Former BitMEX CEO Arthur Hayes described Japan’s policy as a clear strategy of negative real interest rates and predicted the Japanese yen could weaken to 200 against the dollar, potentially driving investment toward hard assets like Bitcoin. The Bitcoin price gain coincided with improvements in U.S. stock market futures, including the Nasdaq 100 and S&P 500, encouraging global investors to take on more risk. However, experts caution that Bitcoin remains volatile, with some analysts identifying $81,000 as a critical support level; a drop below this could lead to further declines. Overall, Japan’s recent rate hike, combined with expectations of easing global financial policies, is creating a favorable long-term environment for Bitcoin, bolstering investor confidence in the crypto market’s future performance.
Source: binance
