Bitcoin Gains as Yen Surprises After Japan Raises Rates; Crypto Market Updates and Regulatory Outlook
The Bank of Japan (BoJ) has raised interest rates to the highest level in nearly 30 years, causing the yen to weaken and pushing the 10-year Japanese Government Bond (JGB) yield to 2% for the first time since 2006. Market participants have expressed concern over Prime Minister Sanae Takaichi's spending plans amid these developments.
In the cryptocurrency markets, Bitcoin is trading around $88,341, while Ether has risen 3.4% to $2,954. The CoinDesk 20 index is up 1.3%. The U.S. inflation rate came in cooler than expected, increasing market odds for Federal Reserve rate cuts in the future; however, no cuts are anticipated next month.
The AI sector remains a risk area, with capital flowing into AI infrastructure. There is concern that valuations could sharply decline if anticipated AI revenues do not materialize. Cryptocurrency miners are pivoting towards AI infrastructure projects, and companies such as Oracle and Iren are increasing their capital expenditures in this space.
Looking ahead, the GENIUS Act is expected to solidify U.S. digital-asset regulation in 2026. Stablecoin reserves are moving back to the U.S., and some retirement-plan providers are testing cryptocurrency exposure at levels of 0.5% to 1%.
Governance activities are underway with Lido DAO shifting towards diversified DeFi strategies, CoW DAO dissolving its Sprinter pool, and Arbitrum DAO updating ArbOS to version 51; all governance votes conclude on December 19.
Upcoming events include the scheduled unlocking of ZRO tokens on December 20, amounting to 6.79% of the circulating supply valued at approximately $37.28 million. Additionally, ZkPass will be listed on exchanges including Binance, MEXC, Bybit, and BingX. Avantis is set to host the League of Leverage on December 19.
