The Bank of Japan (BoJ) has decided to keep interest rates unchanged at 0.50%, a move widely expected by markets. Following the announcement, the Japanese yen weakened against the U.S. dollar, slipping to 149.79 per USD. Meanwhile, crypto markets reacted positively, with Bitcoin (BTC) and Ethereum (ETH) posting gains as investors turned their attention to the upcoming Federal Reserve decision.
BoJ Maintains Cautious Stance
Despite inflationary pressures, Japan’s central bank opted to hold steady, signaling that economic growth remains its top priority. Policymakers reaffirmed their commitment to ensuring a “wage-price cycle” that supports sustainable inflation over time. While Japan’s economy is projected to expand, BoJ officials warned that global uncertainties—especially U.S. trade disputes—could weigh on future growth.
This decision caused mixed reactions in Asian stock markets, while gold prices remained near record highs. However, in the forex market, the yen weakened, which pushed traders toward alternative assets like cryptocurrencies.
Crypto Market Sees Fresh Inflows
As the yen lost ground, the global crypto market cap rose by 1% to $2.72 trillion, reflecting renewed investor interest. Here’s how top cryptocurrencies responded:
- Bitcoin (BTC): +1.0% to $83,172
- Ethereum (ETH): +2.2% to $1,936
- XRP: +2.4% to $2.28
This trend suggests that investors might be using crypto as a hedge against currency volatility, a pattern observed in previous instances of yen weakness.
What’s Next? The Fed Takes Center Stage
With the BoJ decision behind us, all eyes are now on the Federal Reserve’s next policy announcement. Investors are eager to see if the Fed signals any upcoming rate cuts, especially amid mixed economic data in the U.S..
Analysts believe that the BoJ may raise rates as early as June, though some speculate a July hike is more likely. If Japan’s central bank shifts toward a more aggressive stance, it could lead to a stronger yen in the coming months, potentially impacting both forex and crypto markets.
For now, traders are watching key levels in the USD/JPY pair:
- Support: 147.41 and 147.00 (could strengthen the yen)
- Resistance: 150.00 and 151.31 (could push the dollar higher)
With market uncertainty high, the crypto rally could continue—especially if the Fed hints at delaying interest rate cuts, keeping traditional markets on edge.
Stay tuned as the story unfolds!
