The Bank of Japan (BoJ) ended its negative interest rate policy, raising its benchmark rate to 0.75%, the highest since 1995. This move signals a shift from the "ultra-accommodative" monetary policy that has influenced global markets. While Bitcoin showed little immediate reaction, analysts suggest the rate hike could impact the yen carry trade, potentially affecting leveraged positions in various markets, including crypto. A continued tightening by Japan, coupled with potential rate cuts by the U.S. Federal Reserve, may compress the U.S.–Japan interest-rate spread, pressuring yen-funded carry trades. Some analysts believe hedging costs and the repositioning of Japanese institutional investments could also weaken the bid for risk assets like Bitcoin.

The Bank of Japan (BoJ) ended its negative interest rate policy, raising its benchmark rate to 0.75%, the highest since 1995. This move signals a shift from the "ultra-accommodative" monetary policy that has influenced global markets. While Bitcoin showed little immediate reaction, analysts suggest the rate hike could impact the yen carry trade, potentially affecting leveraged positions in various markets, including crypto. A continued tightening by Japan, coupled with potential rate cuts by the U.S. Federal Reserve, may compress the U.S.–Japan interest-rate spread, pressuring yen-funded carry trades. Some analysts believe hedging costs and the repositioning of Japanese institutional investments could also weaken the bid for risk assets like Bitcoin.