Bitcoin Surges as Japan Hikes Rates

Bitcoin surged this week as the Japanese yen weakened following the Bank of Japans decision to raise interest rates by 25 basis points, marking the highest level in three decades. Despite the hike, interest rates remain negative when adjusted for inflation, indicating loose financial conditions. The yens decline and Bitcoins climb were largely anticipated, as investors had held long positions in the yen and speculators had long positions in Bitcoin. The rate hike did not lead to a significant strengthening of the yen, as Japanese rates remain lower than those in the U.S., preventing a massive unwinding of carry trades and maintaining global risk appetite.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.