Bitcoin Fluctuates Around $104K as Bank of Japan Takes Hawkish Stance with Rate Hike.

Bitcoin (BTC) remained stable during Friday’s Asian trading hours despite the Bank of Japan (BOJ) raising its benchmark interest rate to the highest level in 17 years and upgrading its inflation forecasts.

In its policy statement, the BOJ noted, “If the outlook presented in the January Outlook Report will be realized, the Bank will accordingly continue to raise the policy interest rate and adjust the degree of monetary accommodation,” citing a positive outlook on wages and inflation, according to ForexLive.

Following the announcement, the Japanese yen – considered a safe-haven currency – strengthened by over 0.6% against the U.S. dollar, reaching 155.12. However, risk assets showed resilience. Bitcoin remained largely unaffected, trading above $104,000 with minimal change on the day, while S&P 500 futures also held steady.

The stability in risk assets suggests a growing focus on potential policy developments under President Donald Trump’s administration. By contrast, a similar BOJ rate hike in July had disrupted risk markets, including cryptocurrencies.

On Thursday, President Trump signed an executive order banning the digital dollar and emphasizing U.S. leadership in crypto and AI innovation. Additionally, recent U.S. data indicated a slower rise in the “all tenant rent” index, a key component of shelter inflation in the CPI. This development has fueled optimism that the Federal Reserve may adopt a less hawkish stance than initially projected in its December forecasts.