NewsSOS
Bitcoin slid after the Bank of Japan raised its benchmark interest rate to the highest level since 1995, extending a pattern in which tightening by major central banks drains appetite for risk assets including the largest cryptocurrency.
The move out of Tokyo injected fresh uncertainty into global markets that had already been repricing rate expectations.
The BOJ Decision and the Macro Transmission The Bank of Japan's rate increase marks a significant shift for an institution that spent years as the lone holdout among major central banks, anchoring ultra-loose policy while peers hiked aggressively.
When a central bank that has been the source of cheap global funding reverses course, the effect runs through carry trades, liquidity conditions, and risk sentiment simultaneously — not just in Japan but across assets priced in dollars and held by leveraged players worldwide.
Keep reading