Japan’s Interest Rate Hike and Its Impact on Crypto Markets
- The Bank of Japan raised its benchmark interest rate to around 1%, the highest level since 1995, amid rising domestic inflation.
- Bitcoin remained stable, trading around $66,000, despite initial expectations of a selloff following the rate hike.
- A recent U.S.-Iran ceasefire contributed to a relief rally in crypto markets, pushing Bitcoin above $65,000 from the low $60,000s.
- Crypto’s total market cap held at approximately $2.34 trillion, down by only about 1.4% on the day.
- Open interest in Bitcoin futures decreased as traders pulled back from leveraged positions.
Despite Japan’s significant rate hike aimed at curbing inflation driven by high oil prices, Bitcoin and the broader crypto market showed resilience with minimal disruption in trading activity.
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