Bank of Japan Raises Benchmark Rate to 1%, Highest in Three Decades; Bitcoin Holds Steady

The Bank of Japan raised its benchmark interest rate to around 1% on Tuesday (June 16), marking the highest level in over three decades, according to a 7-1 policy board vote. The new guideline takes effect June 17 as policymakers cited risks of inflation rising above a 2% target amid higher oil prices.

Crypto markets held steady despite the hike. Bitcoin traded around $66,000, down 1.1% on the day, while the broader crypto market's total cap remained near $2.34 trillion, down 1.4%, per CoinGecko data. "The Yen carry trade has failed to trigger any meaningful disruption in either crypto or global equities this time around," said Ryan Yoon, senior analyst at Tiger Research, citing traders' "refusal to panic" after the market's prior recovery from earlier carry trade volatility.