Bitcoin rises after Bank of Japan hikes interest rates to a 31-year high
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Bitcoin BTC $ 66,300.77 reversed early losses in the Asian session after the Bank of Japan raised interest rates to a 31-year high in its fight against inflation.
Key facts
- In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024
- The decision hit the wires around 3:19 UTC on June 16
- The BOJ lifted its policy rate by 25 basis points to 1% from 0.75%, the highest level since 1995
- Bitcoin BTC $ 66,300.77 reversed early losses in the Asian session after the Bank of Japan raised interest rates to a 31-year high in its fight against inflation
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. The decision hit the wires around 3:19 UTC on June 16.