Bitcoin and Ether Rise Following Bank of Japan Rate Hike Amid Improved Asian Risk Sentiment
Bitcoin and ether prices climbed above key technical levels as Asian equities rose after the Bank of Japan (BOJ) raised rates to the highest levels in three decades. The 10-year Japanese Government Bond (JGB) yield briefly touched 2% for the first time since 2006.
The BOJ rate hike was absorbed smoothly by markets, resulting in a weaker yen and a 0.7% rise in the MSCI Asia Pacific Index. U.S. stock futures also showed gains with the S&P 500 up 0.8% and the Nasdaq 100 up 1.5%.
Softer U.S. inflation data boosted risk sentiment internationally and raised expectations that the Federal Reserve may begin cutting rates in the coming months. In Asian trading, bitcoin traded above $87,000, while ether's rise was part of broader market strength. Other cryptocurrencies including Cardano (ADA), Solana (SOL), Dogecoin (DOGE), Binance Coin (BNB), and XRP increased up to 3%, with DOGE at $0.1261, BNB at $836.48, and XRP at $1.8416.
Crypto liquidations over the past 24 hours exceeded $576 million, mostly from long positions, indicating crowded positioning and elevated leverage among traders. On-chain data from K33 Research showed that roughly 20% of bitcoin's supply has rotated back into the market over the past two years, suggesting that long-term holders may be nearing the end of a selling phase.
Market analysts noted that this recent bounce appears driven more by macroeconomic relief than conviction, with thinner liquidity typical of year-end raising vulnerability to sharp price moves.
