Bitcoin rises after Bank of Japan hikes interest rates to a 31-year high
The Bank of Japan raised its key interest rate by 25 basis points to 1%, the highest level since 1995.
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Summary
- The Bank of Japan raised its key interest rate by 25 basis points to 1 percent, the highest level since 1995, while signaling it may tighten further if inflation accelerates.
- Despite rate hikes typically weighing on risk assets, bitcoin rose from about $65,600 to $66,000 after the decision, as markets focused on the BOJ’s unexpectedly dovish stance on bond purchases.
- The BOJ’s move to pause its bond taper and fix monthly JGB purchases around 2 trillion yen is seen as an effort to cap long-term yields and support financial markets even as short-term policy tightens.
