Bitcoin held above $63,000 on Thursday, steadying after volatile trading, as Japan signaled it would raise interest rates to their highest level in 31 years. The move by the Bank of Japan marks a historic shift from years of ultra-loose policy, with markets pricing in a hike that could ripple through global risk assets.
The rate decision, coupled with what CoinDesk called 'the largest listing in history,' provided a dual catalyst for crypto markets. Bitcoin's resilience above $63,000 comes amid broader firming across digital assets, though the token most tied to Elon Musk traded in line with the broader market, showing no outsized gain.
The potential BOJ hike has sparked concern among carry traders who borrowed cheap yen to fund crypto bets. A sharp rise in Japanese rates could unwind those positions, adding pressure to an already cautious market. Crypto indices showed modest gains, but volumes remained subdued as traders awaited the central bank's next move.
Counter-argument: Some analysts argue the BOJ's hike has been well-telegraphed, and its impact may already be priced in. Others note that Bitcoin's correlation with traditional macro factors remains inconsistent, suggesting the selloff fears could be overblown.