Raising interest rates in Japan is a mistake: the collapse of the yen—what does that mean for Bitcoin?

The Bank of Japan raised interest rates to their highest level in 30 years, yet the yen has fallen to its lowest historical levels. The result is completely the opposite of what Japan intended to do.

With the government now indicating the possibility of intervening in the currency market, uncertainty is only increasing.

Japan warns of "taking appropriate action" as the yen slides

On Monday, Atsushi Mimura, Japan's Deputy Minister of Finance for International Affairs and the country's chief currency diplomat, warned that recent foreign exchange movements were "one-sided and unilateral." He added that authorities are ready to take "appropriate measures" if exchange rate movements become excessive — a clear indication that currency intervention is on the table. Finance Minister Satsuki Katayama made similar statements last weekend, saying that Tokyo would respond appropriately to excessive and speculative movements in currencies.