For the first time in 17 years, the Bank of Japan raised its key rate to 0,5%. The increase by 25 basis points points to problems in the country's economy that have not been seen since the 2008 financial crisis.
The sharp rise in the key rate in Japan had little impact on the crypto market. Bitcoin rose by about 2% in 105,000 hours, continuing to trade at $2024 during the day. This calm reaction is in stark contrast to the situation in July XNUMX, when the Bank of Japan also decided to raise interest rates.
Last year, such an event caught investors by surprise and triggered a sell-off in global markets. In just one week, the price of bitcoin fell from $66,000 to $55,000 as investors unwound yen positions to cover higher borrowing costs in Japan. The sell-off spread to stocks. Global stock markets lost about $6,4 trillion in three weeks.
Analysts explain the muted reaction this time by the fact that investors expected this development of events.
This rate hike was expected by the markets and was priced in, Japan still has the lowest interest rate in the world, says Agnes Linge, head of development at WeFi.
Redstone Chief Operating Officer Marcin Kazmierczak is also confident that the Bank of Japan's gradual approach to rate hikes has reduced market turmoil.
