The price of bitcoin (BTC) remained mostly stable following the Bank of Japan’s (BOJ) decision to maintain its benchmark interest rate at 0.5% on Wednesday. This move met market expectations as officials evaluated the potential effects of U.S. tariffs under President Donald Trump on Japan’s export-reliant economy.
The BOJ acknowledged “significant uncertainties” regarding trade policies, with Governor Kazuo Ueda underscoring the importance of monitoring how the tariff initiatives might impact both global and Japanese markets.
This decision precedes a meeting of the U.S. Federal Reserve, where rates are also projected to stay unchanged, largely due to the significant implications of Trump’s tariff policies.
Japan’s monetary policy and bond yields frequently sway BTC markets. A robust yen coupled with increasing yields usually pressures bitcoin by drawing investment towards traditional assets, whereas a stable or declining yen tends to enhance the cryptocurrency’s attractiveness as an alternative store of value.
Notably, when the central bank raised rates in January, bitcoin’s price remained stable as the focus shifted to anticipated policy changes during Trump’s administration.
The current interest rate decision upholds Japanese bond yields, subsequently easing pressure on the price of bitcoin.