$BTC
The overall market prediction was that the BOJ would announce a rate hike. The Japanese central bank confirmed this on Friday, revealing it was raising rates by 25 basis points.
Interestingly, the Bitcoin USD price chart experienced a rally on the same day that the BOJ announced the rate hike. A contrary outcome to the expected downside.
BTC price traded above $88,000 at press time after recovering from below the $86,000 price tag on Thursday.
The uptick aligned with the idea that the Bitcoin price downside in the last few months priced in the BOJ’s policy change. Some believe that the slight uptick on Friday suggests that some investors bought back after the dip.
On the other hand, this could signal that the market might be faking an uptrend before it extends its downside. One thing was for sure. The actual event did not have much of a negative impact, but the rate hike could still lead to the Yen carry trade unwind.
But if the BOJ’s rate cut was priced in, then Bitcoin might have an easier time recovering. The banks may have just revised their Bitcoin price prediction, but their predictions remained positive, though lower, likely due to the liquidity impact.