Japan’s First Rate Hike in 17 Years Fails to Stem Crypto Slide
The Bank of Japan ended its negative interest rate era with a 25 basis-point hike to 0.75%, marking its first tightening since 2007. While policymakers emphasized accommodative conditions would persist, crypto markets extended losses amid the shifting macro landscape.
Bitcoin briefly dipped below $86,000 while Ethereum struggled near $2,800. The AI token sector led declines with a 5.34% drop, dragging down adjacent segments including CeFi, Layer 1, and DeFi protocols. Only a handful of tokens like Zcash and Bitcoin Cash defied the bearish trend.
The MOVE follows Japan's spring wage negotiations yielding the highest pay increases in 33 years, giving the central bank confidence to normalize policy. Yet Governor Ueda signaled caution: 'We don't foresee rapid rate rises given domestic demand remains fragile.'
