Bitcoin and ether climbed through key technical levels on Friday, tracking gains in Asian equities after the Bank of Japan raised interest rates to their highest level in three decades, while softer U.S. inflation data helped revive appetite for risk assets.
Bitcoin traded above $87,000 during Asian hours, with ether advancing alongside broader markets. Investors largely brushed aside the BOJ’s well-signaled policy move, turning their focus instead to signs that global financial conditions are beginning to ease.
The rally extended across major altcoins. Cardano’s ADA, Solana’s SOL, dogecoin, BNB and XRP rose by up to 3%, while the CoinDesk 20 Index advanced 2%, pointing to broad participation across the crypto market.
Gains followed a volatile but mostly range-bound session that saw more than $576 million in crypto liquidations over the past 24 hours, according to CoinGlass. The bulk of those liquidations were in long positions, underscoring how crowded positioning had become during the recent rebound and the continued reliance on elevated leverage for incremental returns.
In Japan, the 10-year government bond yield briefly touched 2% for the first time since 2006 after the central bank lifted its benchmark rate, a move widely expected after weeks of hawkish messaging from Governor Kazuo Ueda. Markets absorbed the decision smoothly, with the yen weakening and regional equities moving higher.
The MSCI Asia Pacific Index rose 0.7%, led by technology stocks, while U.S. equity futures extended their recovery. The S&P 500 gained 0.8% and the Nasdaq 100 jumped 1.5%, helped by an upbeat outlook from Micron Technology that eased concerns around artificial intelligence spending and stretched valuations.
Risk sentiment was further supported by softer U.S. inflation data, reinforcing expectations that the Federal Reserve could begin cutting rates in the coming months.
On-chain indicators also point to easing pressure. Long-term bitcoin holders appear close to ending an extended distribution phase, according to K33 Research, after roughly 20% of supply rotated back into the market over the past two years.
Still, caution persists. The latest bounce appears driven more by macro relief than firm conviction, leaving crypto vulnerable to sharp swings as markets head into year-end with thinner liquidity and elevated leverage.
