The Bank of Japan has broken with decades of ultra-accommodative policy by raising interest rates to 0.75%, its highest level since 1995. This measure not only strengthens the Yen, but has sent a ripple of volatility across cryptocurrency markets, forcing a massive unwinding of the Carry Trade
1. The Yen strengthens and the dollar retreats
The reaction in the foreign exchange market was instantaneous. The USD/JPY pair broke the critical support level of 154.50, as investors rush to repatriate capital. A more expensive Yen means that the cheap money flowing into speculative assets has begun to dry up
2. XRP- Between banking adoption and macro storm
Despite positive news about XRP's integration into 80% of Japanese banks by 2025, the asset has not been immune to the Samurai Effect
Reaction- The price has retraced by 4%, looking for support in the $1.86 area
Outlook: Although institutional selling pressure is real due to rate adjustments, Ripple's strong infrastructure in Japan (led by SBI Holdings) could act as a safety net, allowing for a quicker recovery than the rest of the altcoins
3. JasmyCoin- The thermometer of the Japanese investor
Jasmy (JASMY), often called the Bitcoin of Japan, has felt the impact more viscerally. The sentiment of local retail investors has turned cautious
Impact- With a drop of nearly 7% after the announcement, Jasmy reflects the fear that rising living costs and changes in the profitability of local bank deposits will drive capital away from domestic data and blockchain projects
4. Situation Analysis- Where are we heading?
Active- Bitcoin (BTC), Post-Announcement Price $86.40; Support Level $82,000; Sentiment- Fear
Active- XRP (XRP), Post-Announcement Price $1.86; Support Level $1.80; Sentiment: Neutral/Cautious
Active- Jasmy (JASMY), Post-Announcement Price $0.021 (est.); Support Level $0.018; Sentiment- Bearish
Conclusion: A new paradigm for 2026
The BoJ's rate hike marks the end of an era. For the crypto ecosystem in Japan, this means less speculative liquidity but greater professionalization. Investors now must differentiate between purely speculative assets and those with real utility in the Japanese economy, such as XRP
Is this the bottom or just the beginning of the correction? The key will be in Governor Ueda's conference and his tone regarding March 2026
