The Bank of Japan's June 16 rate decision is expected to raise rates to 1%, the highest since 1995. Historical data shows Bitcoin fell 24%-34% after each previous hike, raising risk alert among investors.
Japan Finance Minister Satsuki Katayama declared 2026 the 'Digital Year One' and pledged full support for crypto exchanges. SBI Holdings' Bitcoin ETF filing awaits approval. Crypto tax cut from 55% to 20%, yen stablecoin JPYC launched, BOJ tightens policy. Bitcoin surges to $92,500.
Bitcoin reversed losses in Asian trading after the Bank of Japan raised rates by 25 basis points to 1%, while a pause in bond tapering helped soften the market impact of tighter policy.
Bitcoin’s 52-week correlation with USD/JPY has fallen to -0.90, showing BTC often drops as the yen weakens. The pattern runs against the usual carry trade narrative and may point instead to broad U.S. dollar strength.
Gold, silver, stocks, and Chinese equities advanced, but Bitcoin weakened. The source points to tighter liquidity, pressure on yen carry trades, and rising geopolitical uncertainty as key drivers.
Japan���s long-term government bond yields have climbed sharply, with the 40-year yield reaching 4% for the first time and the 10-year topping 2.3%, as markets reassess fiscal, political, and policy risks.
Bank of Japan expected to raise rates to 1% on Tuesday. Yen speculative shorts exceed 115,000 contracts, raising risks of unwind that could roil crypto markets.
The yen hit a 40-year low against the dollar, fueling risk-off sentiment and pushing Bitcoin below $60K. Strategy plans to sell up to $1 billion in Bitcoin to fund buybacks and dividends, conflicting with its 'never sell' gospel. Yen carry trade unwinding could roil markets.
