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The post Bank of Japan Rate Cut Decisions May Shake Crypto Markets in 2026 appeared first on Coinpedia Fintech News Japan’s central bank, the Bank of Japan (BOJ), is signaling that another rate cut is expected in January 2026. Despite the yen continuing to weaken sharply against the U.S. dollar. This move has raised concern across global markets, especially about how Bitcoin and the wider crypto market may react. BOJ Indicates More Rate Cuts In January For years, the Bank of Japan (BOJ) has followed an ultra-easy policy to support economic growth, even as other central banks raised rates. Japan stayed far behind. Now, things have begun to change. On December 19, 2025, the BOJ raised its policy rate by 25 basis points to 0.75%, the highest level in nearly 30 years. This move signaled a shift away from long-running ultra-low rates. BOJ officials said Japan’s interest rates are still very low compared to other countries. They noted that low rates have weakened the yen and pushed inflation higher. Thus, some experts expect another rate likely to reach 1.25%–1.50% by 2027. Despite these views, data from Polymarket shows a 97% chance of no rate change in January, while only 2% expect a 0.25% rate cut, showing uncertainty about the BOJ’s next step. Japanese Yen Continued to Weaken  Following the December rate cut, the Japanese yen continued to weaken against the U.S. dollar and is now trading near ¥156 per dollar. Although Japan raised interest rates to 0.75%, they remain far below U.S. rates of around 3.75%. This gap keeps investors moving toward the dollar for better returns. The weaker yen is increasing import costs and adding inflation pressure, showing that Japan’s monetary policy is still loose compared to other major economies. How Bitcoin and Crypto Could React Historically, BOJ rate increases…

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Filed under: News - @ December 29, 2025 7:27 am