The Bank of Japan just kept its benchmark rate at 0.75%, highlighting persistent inflation concerns and an uneven recovery in Japan’s economy.
➡ Governor Ueda reiterated that future hikes depend on growth vs. inflation dynamics, leaving markets guessing about the pace of future tightening.
This policy decision hit global risk assets — including crypto — for two key reasons:
Japanese yield volatility → Liquidity shock:
When Japanese rates go up or stay elevated, yen carry trades (where traders borrow cheap yen to fund risk assets) shrink — and that reduces liquidity flowing into BTC.
Risk-off sentiment rises:
Higher rates abroad and inflation worries push traders out of high-beta assets like Bitcoin into perceived safer havens — even gold and bonds. Markets saw $BTC dipping while gold hit highs.
So even though the BOJ didn’t hike today, the tone and macro backdrop still drag on risk appetite across markets — and Bitcoin’s price reflects that.
