CoinGape·4h ago·negative

Bank of Japan Hikes Rates to 1%, Bitcoin Drops as Yen Carry Trade Unwinds

The Bank of Japan raised rates to 1%, the highest since 1995, triggering yen carry trade unwinding that pushed Bitcoin down over 2% to $65,827. Past BOJ hikes have led to 20-30% Bitcoin crashes in following weeks.

BOJ raised rates by 25 bps to 1%, its 5th hike since ending negative rates, in a 7-1 vote
Bitcoin fell over 2% to $65,827 as yen carry trade unwinding drained risk-asset liquidity
Past four BOJ rate hikes since 2024 triggered 20-30% Bitcoin selloffs in subsequent weeks
The yen weakened against the dollar, and the US-Iran peace deal limited further crypto losses
Traders now eye the FOMC meeting where new Fed Chair Kevin Warsh is expected to hold rates steady

macromarketImpact 7/10

Why our editor rated this negative

BOJ rate hikes historically trigger Bitcoin crashes, and this move signals tighter global liquidity. However, the US-Iran peace deal and yen weakening partially offset the damage, keeping the impact contained for now.

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