On Friday, Bitcoin and ether surged past significant technical thresholds, reflecting the positive momentum in Asian stock markets. This uptick followed the Bank of Japan’s decision to increase interest rates to their highest point in thirty years, coupled with U.S. inflation data that tempered concerns and rekindled interest in riskier assets.
During trading hours in Asia, Bitcoin exceeded $87,000 while ether also experienced gains amid a broader market rally. Investors appeared unfazed by the BOJ’s anticipated rate hike and instead shifted their focus towards improving global financial conditions.
Other cryptocurrencies such as Cardano’s ADA, Solana’s SOL, DOGE at $0.1261, BNB priced at $837.20, and XRP valued at $1.8415 saw increases of up to 3%. The CoinDesk 20 index also reflected this upward trend with a rise of 2%.
This upward movement occurred after a tumultuous trading session that remained largely within set ranges; over the span of just one day, more than $576 million worth of crypto positions were liquidated—predominantly long positions—according to CoinGlass data.
The pattern of these liquidations highlights how crowded market positions had become during recent price recoveries while high leverage usage persists for capturing minor profits.
The yield on Japan’s 10-year government bonds briefly reached 2%, marking its first occurrence since 2006 following the central bank’s rate increase—a widely anticipated move after weeks filled with hawkish signals from Governor Kazuo Ueda.
Instead of unsettling investors, this decision was integrated into market dynamics without disruption; consequently leading to a weaker yen alongside rising Asian stock indices.
The MSCI Asia Pacific Index rose by 0.7%, primarily driven by technology stocks as futures linked to U.S equities continued their recovery overnight. The S&P 500 climbed by 0.8%, while the Nasdaq 100 soared by an impressive 1.5%, buoyed by optimistic forecasts from Micron Technology which alleviated worries regarding artificial intelligence investments and inflated valuations.
A further boost in risk appetite came from softer inflation figures out of the U.S., resetting expectations that could lead the Federal Reserve towards potential rate cuts in upcoming months.
In addition to these developments, on-chain analytics indicate some easing pressure within cryptocurrency markets may be underway.
K33 Research suggests that long-term Bitcoin holders are nearing completion of an extended selling phase after approximately twenty percent of supply has cycled back into circulation over two years’ time.
However, traders remain vigilant amidst these shifts. The latest price rebound appears more influenced by macroeconomic relief rather than strong conviction among investors—leaving cryptocurrencies susceptible to volatile fluctuations as we approach year-end characterized by lower liquidity levels and heightened leverage risks.