Speculative short positions on the Japanese yen reached a nine-year high ahead of the Bank of Japan's policy meeting. There are growing concerns that Japanese monetary tightening could trigger an unwind of carry trades that support risk assets like Bitcoin. Consequently, the Bank of Japan raised interest rates to their highest level in 31 years, marking a significant policy shift away from near-zero levels.
Bitcoin remained steady despite the Bank of Japan raising rates to 1%, a level not seen since 1995, as traders pivot focus toward US liquidity conditions.
Read the full storyThe BoJ hiked rates to 1.0% while the BoE held at 3.75%, narrowing the interest rate differential in favor of the Japanese Yen.
The Bank of Japan increased benchmark interest rates to their highest level since 1993, accelerating its shift away from decades of ultra-loose monetary policy.
In a historic shift for Japanese monetary policy, the Bank of Japan (BoJ) has raised interest rates to their highest level in 31 years, marking a definitive end to the era of ultra-loose policy.