Bank of Japan ETF Adjustment Sends Markets Lower, Crypto Feels the Impact

BOJ ETF Unwind Pressures Bitcoin as Markets Turn Risk-Off

Bitcoin retreated to just above $116,000 on Friday as global markets reacted to the Bank of Japan’s long-planned unwind of ETFs and JREITs totaling $250 billion.

The BOJ will sell ETFs with a book value of ¥330 billion ($2.2 billion) per year, or ¥620 billion ($4.2 billion) at market prices. Governor Kazuo Ueda emphasized a slow, controlled pace, noting the unwind could take more than a century.

Japan’s benchmark rate remained at 0.5%, but the split 7-2 vote and rising core CPI of 2.7% stoked speculation of tightening in coming months. The Nikkei dropped 1% and 10-year JGB yields rose to 1.64%, reflecting investor caution that spilled over into crypto markets.