Japanese rate hike no longer a negative factor for BTC, analysis suggests

The cryptocurrency market was not significantly impacted by the Bank of Japan's (BOJ) decision to raise its key interest rate to 1.0%, according to an analysis by Cointelegraph. The outlet noted that while the rate hike brought the interest rate to its highest level since September 1995, BTC remained relatively stable around the $66,000 mark. This marks a clear departure from August 2024, when an unexpected rate hike of the same magnitude caused BTC to plummet from $65,000 to $50,000 within a week. The report explained that a $4.4 billion outflow from spot ETFs over the past 13 trading days has significantly deleveraged the market, and the yen carry trade is no longer a decisive factor in moving BTC's price. Cointelegraph attributed the muted market reaction to several factors: - The possibility of a rate hike was already priced in by the market. - The scale of the yen carry trade has diminished compared to the past. - BTC has already fallen approximately 50% from its peak, clearing out significant leverage. - The real interest rate remains in negative territory.