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Japan’s Historic Rate Rise Fails to Shake Bitcoin – Is the BTC Calm Misleading?

On Friday, the Bank of Japan (BOJ) hiked interest rates by 25 basis points (bps) to 0.75%, the highest level in almost three decades. Despite this shift in monetary policy, which analysts had considered detrimental to cryptocurrencies, Bitcoin has held steady, currently trading at $88,282 after rising 1.3% in the last 24 hours, according to

Andrew Richard2 min read

Japan's Historic Rate Rise Fails to Shake Bitcoin - Is the BTC Calm Misleading?

On Friday, the Bank of Japan (BOJ) hiked interest rates by 25 basis points (bps) to 0.75%, the highest level in almost three decades. Despite this shift in monetary policy, which analysts had considered detrimental to cryptocurrencies, Bitcoin has held steady, currently trading at $88,282 after rising 1.3% in the last 24 hours, according to data from CoinGecko.

BTC’s latest response to the BOJ’s rate hike defies history, as previous tightening cycles have typically followed massive sell-offs due to traders’ fears that borrowing would become expensive, making it difficult for institutions to access finance and pour liquidity into the crypto markets.

However, this time it appears that traders had already priced in the BOJ’s decision, which is why Bitcoin has not witnessed panic selling. On Thursday, data from predictions site Polymarket showed users had placed a 99% chance that Japan would hike interest rates today.

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