Bitcoin Steady Near $104K After Hawkish Rate Hike from the Bank of Japan.

Bitcoin Holds Steady as Bank of Japan Hikes Rates to 17-Year High

Bitcoin (BTC) remained resilient during Friday’s Asian trading session after the Bank of Japan (BOJ) raised its benchmark borrowing rate to the highest level in 17 years while also revising its inflation forecasts upwards.

The BOJ’s policy statement indicated that if the positive economic outlook outlined in the January Outlook Report is realized, the bank plans to continue raising interest rates and gradually tighten monetary policy. “The Bank will accordingly continue to raise the policy interest rate and adjust the degree of monetary accommodation,” the statement read, reflecting an optimistic view on wages and inflation.

Following the rate hike, the Japanese yen strengthened by more than 0.6%, reaching 155.12 against the U.S. dollar. Despite this, risk assets like Bitcoin showed little sign of stress, trading largely unchanged above $104,000. Similarly, futures tied to the S&P 500 were flat.

This stability in risk assets indicates that market focus is increasingly shifting toward potential policy shifts under President Donald Trump’s administration. In contrast, a similar rate hike by the BOJ in late July had previously led to volatility in risk assets, including cryptocurrencies.

On Thursday, President Trump signed an executive order banning the digital dollar while encouraging innovation in cryptocurrencies and AI within the U.S. Additionally, recent U.S. data revealed that the “all tenant rent” index, a key driver of shelter inflation in the CPI, rose at a slower pace in the last quarter, prompting hopes that the Federal Reserve might reconsider its hawkish stance and adjust its rate forecast for December.