*Bitcoin Surges Above $87,000 as Yen Slides Following Bank of Japan Rate Hike*
Bitcoin (BTC) jumped above $87,000 on Wednesday, gaining momentum as the Japanese yen weakened following the Bank of Japan's (BOJ) interest rate hike. The central bank raised its short-term policy rate by 25 basis points to 0.75%, marking the highest level in nearly three decades. The BOJ's decision acknowledged that inflation has remained above the 2% target due to rising import costs and domestic price dynamics.
The Japanese yen slipped to 156.03 per US dollar, triggering a surge in Bitcoin's price. The leading cryptocurrency rose from $86,000 to $87,500 before pulling back slightly to trade near $87,000. The market reaction aligns with expectations, as the rate hike had been widely anticipated.
The BOJ's rate hike marks a significant shift in Japan's monetary policy, potentially impacting global liquidity and risk appetite. Analysts believe that the BOJ's gradual approach to rate hikes will limit the impact on global markets, but investors will be watching closely for further developments. $BTC
