The post Bitcoin Investors Are Watching Bank of Japan Moves Ahead of Fed Rate Decision appeared on BitcoinEthereumNews.com.

In brief The Federal Reserve is expected to hold interest rates steady tomorrow, but investors are eager for signs of a rate cut ahead in September. Meanwhile, the Bank of Japan could raise interest rates for the second time in 17 years on Wednesday. The Japanese yen has strengthened as investors cover short positions, an analyst said. As the Federal Reserve and Bank of Japan (BOJ) weigh key monetary policy, Bitcoin and other crypto investors are eager to learn how the central banks’ respective moves could influence markets Wednesday. The BOJ will outline plans for a rate hike’s timing that could strengthen the Japanese yen’s value, in combination with details of a decrease in the purchasing of Japanese bonds. The decision comes after the central bank raised interest rates in March for the first time in 17 years. Whether or not the BOJ raises interest rates again is currently a coin flip, with the market pricing in a 50% chance, per Reuters. While the currency’s value has rallied sharply against the U.S. dollar over the past two weeks, it’s still slid 8% over the past year. Anticipation toward a BOJ rate hike has caused the yen’s value to rise as traders betting against the currency’s value have moved to cover trades with the sale of other assets, Joe Tuckey, Head of FX Analysis at Argentex Group, told Decrypt in a written statement. ​​“Markets have developed a hawkish expectation for the upcoming BOJ meeting,” he wrote. “However, there is a risk that the BOJ may not raise rates at tonight’s meeting. Instead, the BOJ could opt to reduce their bond purchase program.” The economist Alex Kruger wrote on Twitter (aka X) that the BOJ’s decision could lead to further selling in “USD assets” as well before the U.S. central bank’s decision…

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Filed under: News - @ August 1, 2024 10:24 am