Will the Bank of Japan Change Its Interest Rate Policy? Effects on Bitcoin!

  • Key central banks like those of Japan, the US, and Australia are set to announce crucial decisions regarding interest rate adjustments.
  • In Asian trading, the MSCI Asia Pacific Index gained ground, particularly boosted by a Japan rally supported by a weak yen.
  • Goldman Sachs predicts that the Bank of Japan (BOJ) will raise interest rates in response to reports indicating wage increases and short-term rates being in the range of 0% to 0.1%.

The Bank of Japan will announce its interest rate decision this week, which could impact the price of Bitcoin!

Interest Decision in Japan to Be Announced This Week

japan

This week marks a crucial moment for both the cryptocurrency and global financial markets as key central banks like those of Japan, the US, and Australia are set to announce decisions regarding interest rate adjustments. Particularly, the Bank of Japan (BoJ) will commence a two-day policy meeting on Monday, March 18. Reports suggest that the BoJ may end its long-standing negative interest rate policy and could make its first interest rate hike in 17 years.

Speculation is growing that the Bank of Japan (BOJ) may raise its main interest rate on Tuesday following Japan’s largest union group announcing three decades’ strongest wage agreements. This expectation caused the yen to edge slightly lower against the dollar during Asian trading hours.

In Asian trading, the MSCI Asia Pacific Index gained ground, particularly boosted by a Japan rally supported by a weak yen. The technology-heavy Nikkei 225 index witnessed its largest gain in a month. However, following a 0.7% decline in the S&P 500 on Friday, US stock futures rose.

According to data compiled by Bloomberg, swaps traders have priced in around 28 basis points of rate increases for this year, with the probability of a rate hike in March estimated at around 54%. In response to reports indicating wage increases and short-term rates being in the range of 0% to 0.1%, Goldman Sachs predicts that the BOJ will raise interest rates. Goldman Sachs Group Inc. economist Tomohiro Ota wrote the following note to investors:

“These developments suggest that the BOJ no longer needs more data or to wait for the quarterly Economic Outlook report in April to change policy.”

What Lies Ahead for Bitcoin and Cryptocurrency?

This could be a week of significant volatility for Bitcoin and the broader cryptocurrency market. Last weekend, the price of Bitcoin dropped below $65,000 but quickly recovered and is currently trading at $68,400 with a market capitalization of $1.348 trillion, marking a 3.27% increase.

Analysts at QCP Capital suggest that heavy selling of BTC options indicates that fear among investors has dissipated, with these investors being eager to seize dip-buying opportunities. They also note significant interest in BTC options for September and December, indicating increased optimism or ‘greed’ in the market.

However, concerns persist over Ethereum (ETH) as perpetual funding has turned negative, and risk reversals continue to show a downward trend. Despite the ongoing rally in alternative cryptocurrencies (altcoins), concerns remain about the possibility of a decline in ETH prices.

Don't forget to enable notifications for our Twitter account and Telegram channel to stay informed about the latest cryptocurrency news.

BREAKING NEWS

Bitcoin Price Alert: What Happens If BTC Breaks $97,000 or Falls Below $94,000?

According to recent data from Coinglass reported by COINOTAG...

Bitcoin Surges to Record High of $95,750: What’s Driving the Crypto’s Remarkable Rally?

Bitcoin touches all-time high of $95,750! --------------- 💰Coin: Bitcoin ( $BTC )...

Blockstream Launches Bitcoin Asset Management Division with Former Hedge Fund Expert Sean Bill as CIO

On November 21, Blockstream, a prominent provider of Bitcoin...

Whale Accumulates 3,289 BTC from Binance, Now Holding 25,010 BTC Worth $2.37 Billion

In a notable development within the crypto space, LookIntoChain...

Binance to Suspend Kava (KAVA) Deposits and Withdrawals for Network Upgrade on November 21, 2024

In a recent **update**, COINOTAG News reported that **Binance**,...
spot_imgspot_imgspot_img

Related Articles

spot_imgspot_imgspot_imgspot_img

Popular Categories

spot_imgspot_imgspot_img