Bitcoin remains near $66,000 despite Japan’s first rate hike to a three-decade high, defying expectations of a crypto selloff.
The Bank of Japan raised its benchmark interest rate to around 1%, the highest level in over 30 years, citing inflation risks tied to rising oil prices. The 7-1 vote decision takes effect June 17, with policymakers signaling potential further hikes if inflation exceeds the 2% target.
Crypto markets showed resilience, with Bitcoin trading at $66,000, down just 1.1% on the day. Earlier in the week, a U.S.-Iran ceasefire deal had pushed Bitcoin above $65,000 from the low $60,000s, softening the impact of Japan’s rate move. Traders on prediction platform Myriad still forecast a 64% chance of Bitcoin falling to $55,000 next.
Japan’s central bank noted the economy has recovered moderately, supported by strong corporate profits and a firmer job market, despite geopolitical strains.