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Japan Halts Interest Rate Hikes, Easing Pressure on Crypto Market
The post Japan Halts Interest Rate Hikes, Easing Pressure on Crypto Market appeared on BitcoinEthereumNews.com. Japan halts interest rate hikes, offering respite to crypto market reeling from the recent sell-off. Japanese rate hikes fueled the weekend crypto crash. The Bank of Japan announced it would pause rate hikes ‘for the time being.’ Crypto markets show signs of recovery. The cryptocurrency markets experienced a significant meltdown on Sunday, with the sell-off continuing into Monday morning (UTC). Analysts largely attributed the bloodbath to the unwinding of the yen carry trade due to the Bank of Japan’s (BoJ) recent interest rate hike. As a result of the BoJ turning hawkish, yen-carry traders find it increasingly unprofitable to borrow yen to buy higher-yielding foreign assets. Cryptocurrencies, being 24/7 liquid markets, have been particularly affected. However, on Wednesday, the BoJ issued a statement indicating a pause in its rate hike program, bringing relief to the beleaguered crypto markets. Japan Interest Rates On Hold Following the weekend’s crypto market turmoil, which saw Bitcoin plummet to a 25-week low of $49,000, the BoJ announced a potential pause in its rate hike program on Wednesday. In a statement to local leaders in Hakodate, BoJ deputy governor Shinichi Uchida said the central bank ‘needs to maintain monetary easing with the current policy interest rate for the time being.’ In March, Japanese interest rates rose for the first time in 17 years, increasing from -0.1% to +0.1%. This was followed by a second increase on July 31, when the BoJ board voted to implement a 15 basis point hike, bringing rates to 0.25%. At that time, BoJ Governor Kazuo Ueda hinted at the possibility of another rate rise in 2024, signaling the definitive end to Japan’s dovish policy, which also included buying domestic bonds. Analysts widely attributed the weekend’s crypto crash to the BoJ’s July rate hike, which made the yen carry trade increasingly untenable. …
The post Japan Halts Interest Rate Hikes, Easing Pressure on Crypto Market appeared on BitcoinEthereumNews.com.
Japan halts interest rate hikes, offering respite to crypto market reeling from the recent sell-off. Japanese rate hikes fueled the weekend crypto crash. The Bank of Japan announced it would pause rate hikes ‘for the time being.’ Crypto markets show signs of recovery. The cryptocurrency markets experienced a significant meltdown on Sunday, with the sell-off continuing into Monday morning (UTC). Analysts largely attributed the bloodbath to the unwinding of the yen carry trade due to the Bank of Japan’s (BoJ) recent interest rate hike. As a result of the BoJ turning hawkish, yen-carry traders find it increasingly unprofitable to borrow yen to buy higher-yielding foreign assets. Cryptocurrencies, being 24/7 liquid markets, have been particularly affected. However, on Wednesday, the BoJ issued a statement indicating a pause in its rate hike program, bringing relief to the beleaguered crypto markets. Japan Interest Rates On Hold Following the weekend’s crypto market turmoil, which saw Bitcoin plummet to a 25-week low of $49,000, the BoJ announced a potential pause in its rate hike program on Wednesday. In a statement to local leaders in Hakodate, BoJ deputy governor Shinichi Uchida said the central bank ‘needs to maintain monetary easing with the current policy interest rate for the time being.’ In March, Japanese interest rates rose for the first time in 17 years, increasing from -0.1% to +0.1%. This was followed by a second increase on July 31, when the BoJ board voted to implement a 15 basis point hike, bringing rates to 0.25%. At that time, BoJ Governor Kazuo Ueda hinted at the possibility of another rate rise in 2024, signaling the definitive end to Japan’s dovish policy, which also included buying domestic bonds. Analysts widely attributed the weekend’s crypto crash to the BoJ’s July rate hike, which made the yen carry trade increasingly untenable. …
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