Digital assets climb following BOJ decision that eases macro pressures.

Bitcoin and ether pushed higher on Friday, breaking above key technical levels as Asian equities advanced following the Bank of Japan’s interest-rate hike to the highest level in roughly 30 years and softer U.S. inflation data helped lift risk appetite.

Bitcoin traded above $87,000 during Asian hours, while ether rose alongside broader markets. Investors largely shrugged off the BOJ’s long-anticipated policy move, instead focusing on signs that global financial conditions are easing.

The rally spread across major altcoins. Cardano’s ADA, Solana’s SOL, dogecoin, BNB and XRP gained up to 3%, while the CoinDesk 20 Index rose 2%, reflecting broad-based strength across the crypto complex.

The advance followed a volatile but mostly range-bound session that triggered more than $576 million in crypto liquidations over the past 24 hours, according to CoinGlass. Most of the liquidations were concentrated in long positions, highlighting how crowded positioning had become during the recent rebound and the continued dominance of high leverage for relatively small gains.

In Japan, the 10-year government bond yield briefly touched 2% for the first time since 2006 after the central bank lifted its benchmark rate, a move that had been widely telegraphed after weeks of hawkish guidance from Governor Kazuo Ueda. Markets absorbed the decision smoothly, with the yen weakening and regional equities climbing.

The MSCI Asia Pacific Index rose 0.7%, led by technology shares, while U.S. equity futures extended their rebound. The S&P 500 gained 0.8% and the Nasdaq 100 jumped 1.5%, supported by a strong outlook from Micron Technology that eased concerns over artificial intelligence spending and stretched valuations.

Risk sentiment was further buoyed by softer U.S. inflation data, reinforcing expectations that the Federal Reserve could begin cutting interest rates in the coming months.

On-chain data also suggests selling pressure may be easing. Long-term bitcoin holders appear close to ending a prolonged distribution phase, according to K33 Research, after roughly 20% of supply rotated back into the market over the past two years.

Even so, traders remain cautious. The latest bounce appears driven more by macro relief than deep conviction, leaving crypto markets vulnerable to sharp moves as year-end approaches amid thinner liquidity and persistently high leverage.