The Bank of Japan’s decision to maintain rates at 1% supports risk assets, including Bitcoin, amid a stable yen carry trade environment.
Bitcoin traded near $63,900, remaining largely unchanged after the Bank of Japan (BOJ) held its benchmark rate at 1%. Governor Kazuo Ueda’s hawkish remarks had little impact, as markets had already priced in a potential October rate hike.
The yen weakened slightly before retracing, leaving the dollar-yen pair flat. Ueda cited inflation expectations above 2% later this fiscal year, driven by AI demand and a weak yen, factors that have also influenced crypto markets. The carry trade, fueled by a soft yen, continues to support risk assets.
Ether held steady at $1,885, while BNB outperformed, rising 3.5% on the day to $591. Broader crypto markets showed muted activity, reflecting the BOJ’s limited immediate impact.