Crypto markets stabilize after Bank of Japan rate hike
Cryptocurrency markets showed steadiness on Friday, with Bitcoin holding firm above the $87,000 mark as the broader market adjusted to the Bank of Japan’s 25-basis-point rate hike, a move analysts said was largely anticipated amid recent selling tied to the unwinding of the yen carry trade. Bitcoin was last priced at $87,794.18, up 0.94 percent over the past 24 hours, after trading between $85,107 and $89,412 during the session. While Bitcoin’s market capitalisation remains below $2 trillion at about $1.75 trillion, it continues to dominate the crypto market by size.
Ethereum outperformed Bitcoin, rising 3.57 percent to trade at $2,938, with a 24-hour trading volume of $35.99 billion. During the same period, Ether fluctuated between $2,777 and $2,994, according to the reports. Broader sentiment improved after softer-than-expected US inflation data. Akshat Siddhant said current price action shows markets have absorbed the Bank of Japan’s rate hike, noting that with the final major macro event of the year now past and CPI data coming in better than expected, a relief rally across crypto markets could emerge in the days ahead.
Bitcoin ETFs recorded net inflows of $457 million, which Siddhant said could help push prices beyond the $90,000 level. He added that a break above that threshold could allow bulls to regain control, while $84,000 remains a key support zone. However, analysts noted that despite the CPI-driven bounce, Bitcoin faced selling pressure as leverage and crowded short-term positioning capped gains. After an early surge toward $89,000, prices failed to hold, triggering stop-losses and liquidations as momentum faded.
Analysts expects volatility to remain elevated in the near term, with prices likely to stay range-bound as leverage unwinds. The desk highlighted strong support near $85,000 and resistance between $88,500 and $89,000, advising investors to avoid chasing breakouts and to keep leverage low until conditions stabilise. Meanwhile, altcoin markets showed mixed performance, with tokens such as Bitcoin Cash, UNUS SED LEO, Ethereum, Dogecoin, Binance Coin, XRP, and others posting gains of up to 9 percent, while several other cryptocurrencies lagged, declining by as much as 8 percent.
