The Bank of Japan (BoJ) announced higher interest rates to 0.5% in a significant leap in 17 years, fueled by the 3.6% Consumer Price Index (CPI) surpassing 3.4% expectations.

The rate spike coincided with an impressive surge in crypto prices as Bitcoin led major altcoins into the 3%-6% gain range. The rally saw Bitcoin reclaim the $105,000 price, and Ethereum crossed above $3,390. The gains saw the altseason index blast 53, prompting investors to project a 500% surge, potentially elevating their market cap to $6.48 trillion. 

The recent hawkish move by the BoJ to raise rates to 0.5% is the first since the 2007-08 financial crisis. This emerges following the 25-basis point hike BoJ declared per the market expectations. It underscores the policy shift in Japan that had never been witnessed since the 2008 financial crisis. 

Market Reaction to BoJ Rate Hike

Market anticipation of higher interest rates played out

Keep reading this article on E-cryptonews.com.

Leave a Reply