The post Bank of Japan Rate Hike Signals Raise Volatility Risks for Crypto appeared on BitcoinEthereumNews.com.

The Bank of Japan is reportedly going to make further cuts in the interest rates.  The decision could abruptly impact the crypto market, as also witnessed in history.  In December an economic meeting was held at the Bank of Japan, and the reports suggest that the central bank may make further cuts in the interest rates, and they may continue to rise. Some person in the meeting stressed that the interest rates of Japan are abnormally high, resulting in the falling value of the yen and the inflation rate.  A board member also mentioned that Japan has the lowest real policy rate as compared to other big economies, and it is right for the bank to adjust the degree of monetary accommodation. As highlighted, the currency fluctuations are having a high impact on domestic prices.  The bank is now in discussions for the stability of exchange rates. Not long ago, the bank increased its main interest rate to 0.75% in the last meeting. The current rate is the highest in the last 30 years; still, some board members say that the current rates are lower than their actual range while adjusting for inflation. Some of the members said that there should be more rate increases in the near future.   The Impact on Crypto Market The forecasts of economists suggest that in the upcoming six months one more increase can be witnessed, and the terminal rate can fall somewhere between 1.25% and 1.50% in the coming two years.  On the other hand, the Japanese yen has fallen abruptly, and the reason for this is said to be the implementation of a normalised interest rate structure in a condition that saw zero interest by the central bank. Investors mostly take interest rates that are normally low, and they invest that capital in…

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Filed under: News - @ December 29, 2025 12:24 pm