The interest rate decisions by the Federal Reserve (FED) and the Bank of Japan have led to an increase in the value of Bitcoin and altcoins.
FED Rate
This week, the Federal Reserve (FED) announced a 50 basis point interest rate cut.
Bank of Japan Rate
Today, the Bank of Japan (BOJ) announced its interest rate decision and kept rates unchanged. This decision provided relief to the global market. With this decision, concerns about the end of yen carry trade operations were reduced, causing Bitcoin and altcoins to rise.
Analyst Opinion
An analyst noted that the strength of the US dollar against the Japanese yen created positive conditions for Bitcoin. According to derivatives trader Gordon Grant, Bitcoin is being supported by the BOJ’s lack of a rate hike, a weaker Japanese yen, and a US rate cut. 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.
Therefore, the FED and BOJ interest rate decisions have significantly impacted Bitcoin's growth. The weakening of the Japanese yen and the strengthening of the US dollar also played a crucial role in this process.
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