The Bank of Japan kept its benchmark interest rate unchanged at 1%, while Governor Kazuo Ueda’s hawkish comments had a muted effect on markets because investors had already priced in expectations for a possible October rate hike.
“Worst hit in Bitcoin history”: Crypto community reacts to Coldcard wallet flaw
Guy Swann called the Coldcard wallet vulnerability one of the most damaging incidents in Bitcoin’s history for experienced users who had followed strict security practices.
“This is not an exchange breach caused by compromised credentials. This involves thousands of individuals potentially having their private keys reconstructed without warning,” Swann said.
He added that the impact of the incident was unlike previous security failures.
David Lawrence said those affected had done what experts typically recommend — learning about Bitcoin, following security guidelines, moving assets away from traditional financial institutions, and using hardware wallets — yet still faced the possibility of losing their life savings.
He warned that the incident could seriously undermine confidence in the idea that billions of people will eventually store Bitcoin through cold-storage solutions.
Charlie Shrem argued that no level of randomness or mathematical protection can completely eliminate future security risks.
Jameson Lopp said security professionals often raise concerns that are ignored until a serious incident occurs.
He noted that unexpected failures can happen over long periods and advised users holding significant amounts of Bitcoin to protect themselves by preparing for rare but possible risks.
Miles Suter from Block suggested that the attacker appeared to lack advanced skills and questioned why more sophisticated exploits had not yet surfaced after the vulnerability became public.
He stressed that users should remain extremely cautious and respond to the situation with urgency.
Bitcoin slips despite Nasdaq rally continuing
Bitcoin lost its previous day’s gains on Friday even as U.S. technology stocks extended their recovery.
The Nasdaq continued to move higher despite an 8% decline in Apple shares following its earnings report.
Amazon helped lift sentiment after rising 11.6% in after-hours trading on stronger-than-expected earnings and an improved outlook.
Nasdaq 100 futures were up 1.2% about two hours before the opening bell.
Digital assets moved lower overall, with Bitcoin down 1% over the past 24 hours at around $63,900, while Ether declined 1.7% to approximately $1,884.
Oil prices recovered toward the week’s highs, with WTI crude trading just below $85 per barrel as traders appeared to build positions ahead of the weekend amid concerns over possible geopolitical developments in the Middle East.
U.S. Treasury yields also moved higher, with the 30-year yield approaching a 19-year peak of 5.22%.
Fed’s key inflation gauge remains above 2% target
The Federal Reserve continues to emphasize its goal of returning inflation to 2%, but recent data indicates that price pressures remain persistent.
Figures released Thursday showed core PCE inflation, the Fed’s preferred measure, rose 3.3% year over year in June. Although the reading eased slightly from May’s 3.4%, it remained well above the central bank’s target.
The prolonged period of above-target inflation has kept bond yields elevated and created additional pressure on risk assets, including cryptocurrencies.
Bitcoin holds steady near $64K after BOJ decision
Bitcoin traded around $63,900 on Friday after the Bank of Japan left interest rates unchanged at 1%, while Governor Ueda’s hawkish messaging failed to significantly move markets.
The yen reversed some earlier gains during Ueda’s press conference, with the dollar-yen exchange rate returning close to previous levels as traders had already anticipated a potential October rate hike.
Ueda said inflation could rise above 2% later this fiscal year and highlighted AI demand and a weaker yen as factors that could continue pushing prices higher — two themes that have shaped market sentiment and crypto performance recently.
A weaker yen has supported carry-trade activity, encouraging flows into risk assets, while the AI investment cycle has remained a major market trend closely followed by Bitcoin.
The broader crypto market remained relatively stable. Ether traded near $1,885, while BNB continued to outperform other large-cap tokens, climbing 3.5% on the day and 4.4% over the week to around $591.
