Bitcoin and ether climbed higher on Friday as global markets responded to a key macroeconomic development — the Bank of Japan’s decision to raise interest rates to 0.75%, the highest level in nearly three decades. The move helped lift risk appetite across Asian markets, with many investors viewing the rate hike as a signal of further normalization in monetary policy.
In Asian trading sessions, Bitcoin surged above $87,000, while ether also posted gains, reflecting renewed confidence among risk-on traders. The broader crypto market benefited from increased liquidity and a more optimistic sentiment backdrop following the rate decisions.
The Bank of Japan’s action marked a notable shift from years of ultra-accommodative policy, as inflation pressures and changing economic dynamics prompted policymakers to tighten. Although rate hikes are typically seen as tightening financial conditions, markets interpreted the decision as supportive of broader risk assets — at least in the short term — because it reduced uncertainty and eased lingering macro overhangs.
Investors have also been closely watching how central banks around the world navigate contrasting monetary paths. While some economies have recently cut rates to stimulate growth, Japan’s tightening stance adds complexity to global financial flows and risk sentiment.
Overall, the positive reaction in crypto suggests that traders are weighing the Bank of Japan’s actions not just for local markets but for their broader implications on global risk appetite and capital allocation decisions.
