After the FED announced its 50 basis point interest rate cut decision during the week, there was an increase in Bitcoin (BTC) and altcoins.
Following the FED's decision, the Bank of Japan (BOJ) announced its interest rate decision today and kept interest rates constant.
The BOJ kept interest rates steady, providing relief to the global market. With this decision by the BOJ, concerns about the end of carry trade operations in Yen were reduced and Bitcoin and altcoins rose.
In addition, as the US dollar strengthened against the Japanese yen, one analyst said that the strengthening of the dollar against the yen created positive conditions for Bitcoin.
Bitcoin is being supported to rise by the BOJ’s lack of a rate hike, a weaker Japanese yen and a US rate cut, derivatives trader Gordon Grant told The Block.
Grant noted that a stronger US dollar against the yen has historically supported higher-risk assets like Bitcoin, as the yen is often used as a funding currency for risk appetite trades.
“The Fed rate cut and the strengthening of the dollar against the yen supported Bitcoin's rise.
Because the current weakness of the yen against the dollar plays an important role in the market. Because the 1% plus strengthening of the dollar against the yen has caused an increase in the value of assets such as gold, silver and also Bitcoin.
“Furthermore, Bitcoin tends to appreciate when the dollar weakens and acts as a high-beta asset that often rises when the overall market risk sentiment is positive.”
*This is not investment advice.
