Bitcoin Holds Ground Around $104,000 Following BoJ’s Interest Rate Increase

Bitcoin Maintains Steady Price Near $104K Despite Bank of Japan‘s Rate Hike

Risk assets, including BTC, remained resilient despite the BOJ’s decision to raise interest rates to their highest level in 17 years.

The Bank of Japan (BOJ) has raised its benchmark borrowing cost to the highest level in 17 years, citing a positive outlook on wages and inflation. However, this move did not seem to have an impact on Bitcoin’s price, which remained steady near $104,000.

Market Attention Shifts to Potential Policy Developments Under Trump’s Presidency

The resilience of risk assets suggests that market attention is increasingly focused on potential policy developments under Donald Trump‘s presidency. This shift in focus may be attributed to the recent executive order signed by President Trump, which aims to ban the digital dollar and promote crypto and AI innovation in the U.S.

In contrast, the Bank of Japan‘s rate hike in late July had previously shaken risk assets, including cryptocurrencies. However, this time around, the market seems to be more focused on the potential implications of Trump’s policies on the crypto market.

US Data Indicates Slower Pace of Shelter Inflation

Recent US data has shown that the “all tenant rent” index, which leads shelter inflation in the CPI, rose at a slower pace last quarter. This development has raised hopes that the Fed will walk back on its hawkish December rate forecasts. The impact of this news on Bitcoin‘s price remains to be seen, but it is clear that market attention is shifting towards potential policy developments under Trump’s presidency.

The anti-risk Japanese yen did rise over 0.6% against the U.S. dollar following the rate decision, but risk assets remained resilient. Bitcoin showed no signs of stress, trading little changed on the day above $104,000. The futures tied to the S&P 500 also traded flat.