Bitcoin Maintains $104K Position After Bank of Japan’s Hawkish Monetary Policy Shift.

Bitcoin Steady Above $104K as Bank of Japan Implements Hawkish Rate Hike

Bitcoin (BTC) maintained its stability on Friday morning in the U.S. trading session after the Bank of Japan (BOJ) raised its benchmark borrowing rate to a 17-year high, coupled with an upward adjustment in its inflation forecasts.

The BOJ’s statement indicated that it would continue to tighten monetary policy in line with the outlook laid out in its January Outlook Report. “If the outlook is realized, the Bank will continue to raise the policy interest rate and further reduce monetary accommodation,” the statement said, reflecting a positive economic view, particularly regarding wages.

In response, the Japanese yen, typically viewed as an anti-risk asset, gained 0.6%, reaching 155.12 against the U.S. dollar. However, risk assets like Bitcoin remained largely unaffected, holding steady above $104,000 for the day. S&P 500 futures also saw little movement, reflecting a neutral market response.

This ongoing resilience in risk assets suggests that market focus is shifting towards potential policy changes under President Donald Trump’s administration. In comparison, a similar rate hike by the BOJ last year caused volatility in the cryptocurrency markets.

On Thursday, President Trump signed an executive order aimed at banning the digital dollar, while pushing for more innovation in cryptocurrencies and AI technologies in the U.S. Moreover, recent U.S. economic data showed slower-than-expected growth in the all tenant rent index, a major component of shelter inflation in the CPI, raising optimism that the Federal Reserve may reconsider its hawkish stance on rate hikes moving forward.