Live updates: 'Move your funds now,' says co-founder and CEO of Coldcard maker Coinkite
Reported by CoinDesk · AI-assisted summary by ChikoCorp AI News Desk
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Summary
On a recent Friday, Bitcoin traded near $63,900, showing little change as the Bank of Japan maintained its benchmark interest rate at 1%. The central bank governor, Kazuo Ueda, attempted to provide a hawkish outlook during his press conference, suggesting inflation would exceed 2% later in the fiscal year, partly driven by demand related to artificial intelligence (AI) and a weak yen. However, his comments had a limited impact on the markets as the yen retreated from earlier gains and the dollar-yen currency pair ended near its previous levels.
This interest rate decision and Ueda's remarks matter because the soft yen supports the yen carry trade, where investors borrow cheaply in yen to invest in higher-yielding, riskier assets. This dynamic has been a key macroeconomic factor influencing cryptocurrencies this month. Additionally, the growing AI-focused capital cycle aligns with Bitcoin's recent price trends, suggesting that tech sector demand remains an important driver behind crypto markets.
Why it matters
Other major digital assets were relatively unchanged, with Ether trading near $1,885. Binance Coin (BNB) was a notable exception, gaining 3.5% on the day and 4.4% on the week to around $591. Overall, the broader crypto market appeared calm, reflecting a wait-and-see attitude as traders digest the Bank of Japan’s policy stance and its implications for currency and risk asset flows.