Bitcoin Holds Ground as Bank of Japan Keeps Rates Unchanged
Bitcoin (BTC) saw little movement on Wednesday after the Bank of Japan (BOJ) opted to keep its benchmark interest rate at 0.5%, a widely expected decision. Policymakers remain cautious as they assess the potential fallout from President Donald Trump’s tariff policies on Japan’s economy.
BOJ Governor Kazuo Ueda pointed to “considerable uncertainties” in the global financial landscape, stating that the central bank will continue to evaluate risks posed by shifting trade policies and market conditions.
The BOJ’s decision comes ahead of the U.S. Federal Reserve’s policy announcement, where rates are also expected to remain unchanged. Investors are closely watching for any signals about how Trump’s trade measures might influence broader economic policy.
Bitcoin’s performance has historically been influenced by Japan’s monetary policy and bond yields. A stronger yen and rising yields tend to pull investment toward traditional financial assets, while a weaker yen often enhances Bitcoin’s appeal as a hedge against economic instability.
Despite the BOJ’s rate hike in January, Bitcoin’s price remained stable, as market attention shifted toward potential policy moves in the U.S.
With bond yields remaining steady after the latest BOJ decision, Bitcoin continues to trade within a narrow range, facing little immediate market pressure.
