Bitcoin Gains Near 3% Despite Bank of Japan Rate Hike
Bitcoin rose 2.5% toward $88,000 after the Bank of Japan raised interest rates to 0.75%—the highest in 30 years—ending its era of ultra-low rates. Despite expectations that higher rates generally dampen risk assets like crypto, sentiment remained optimistic. Arthur Hayes and others projected long-term bullish impacts for both Bitcoin and the yen. Temple 8 Research highlighted that further rate increases are unlikely before 2027 to avoid raising interest costs on Japan’s new stimulus package, reflecting tension between political and market pressures. Bitcoin and US stock futures climbed ahead of Friday’s Wall Street open, with some analysts citing seasonal trends and shifting investor sentiment as supportive for a year-end rally. However, significant price volatility persisted, and analysts cautioned that Bitcoin may still need to retest key support levels, with a “true capitulation event” yet to occur.
