Right now, the Bank of Japan (BOJ) is expected to raise its key interest rate rather than cut it. Markets and economists are widely forecasting a rate increase from 0.50% to about 0.75% at the BOJ’s meeting in December 2025, which would be the highest level in about 30 years. This is mainly because inflation in Japan has been above the BOJ’s target (~2%) for a while and wages are rising, giving the central bank reason to tighten monetary policy further.
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The Federal Reserve (Fed) in the United States has indicated that it will not make a definitive decision to lower interest rates in December for now.
Not lowering interest rates means that 'risky' assets (such as crypto) become less attractive to investors, as lower-risk options like bonds become more appealing.
As a result, there is pressure on crypto assets as investors are becoming cautious. #crypto