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The Bank of Japan (BOJ) has raised its key policy rate from 0.5% to 0.75%. This marks its highest level since 1995 and ends a long period of ultra-low rates.

Why It Matters for Markets

· Fighting Inflation: The hike is a direct response to inflation staying above the BOJ's 2% target for 44 consecutive months.
· A Stronger Yen : Higher rates should boost the Yen's value. This matters because a weaker Yen had pushed up import costs and inflation.
· Global Ripple Effect: The move could unsettle the "carry trade" (borrowing in low-yield JPY to invest elsewhere), potentially causing volatility across global assets.

Connecting to Our Bitcoin Talk
For Bitcoin, the link is indirect but important. A significantly stronger Yen can pressure the US Dollar (DXY) which historically influences crypto. More directly, any major shift in global liquidity from this policy change can affect risk sentiment for all speculative assets, including crypto.

Master's Quick Take
The BOJ has made its historic, expected move. The focus now shifts to their future guidance and the pace of hikes. For crypto, watch if this strengthens the Yen and weakens the Dollar. Combined with the $85K-$100K Bitcoin options corridor we discussed, it adds another macro layer to this tense, range-bound market.