The Bank of Japan lifted its benchmark interest rate to its highest level in three decades, with BOJ Governor Kazuo Ueda announcing that the policy board unanimously approved a 0.25 percentage point hike, bringing the rate to 0.75%.

When the Bank of Japan raised its key interest rate to 0.75% (the highest in 30 years), it can influence Bitcoin’s price in several ways:

🔹 Stronger Risk-Off Sentiment

Higher interest rates can make traditional assets like government bonds more attractive and reduce appetite for riskier assets like Bitcoin. This could put downward pressure on BTC in the short term.

🔹 Tighter Global Liquidity

Interest rate increases can slow down money flow into investments. With less liquidity in markets, traders might reduce exposure to crypto, which is often viewed as a high-risk asset.

🔹 FX Impact & Capital Flows

A rate hike in Japan might strengthen the yen relative to other currencies. If traders shift funds back into stronger fiat assets, some demand for BTC from Japanese investors could weaken.

🔹 Macro Sentiment Matters Most

Bitcoin often reacts to global monetary policy trends—especially when major central banks tighten. If other central banks follow suit, BTC could face broader selling pressure.

📌 Bottom Line:

The BOJ’s rate hike may create a risk-off environment, which can weigh on Bitcoin price in the near term. However, BTC’s long-term trend depends on global liquidity, investor sentiment, and demand from both retail and institutions.