- Governor Kazuo Ueda leads BoJ to raise interest rate to 0.75%, highest since 1995.
- Global market implications include yen appreciation and cryptocurrency volatility.
- Impact on cryptocurrency market dynamics, particularly BTC and ETH, amid market uncertainties.
The Bank of Japan, under Governor Kazuo Ueda, raised the benchmark interest rate to 0.75% on December 22, marking the first increase in 11 months.
This rate hike, reaching a 30-year high, could impact cryptocurrency markets, affecting Bitcoin and Ethereum due to yen carry trade adjustments.
Key Developments, Impact, and Reactions
Kazuo Ueda, leading the Policy Board, approved a rate hike to align with market expectations. This move marks their first increase in nearly a year and sets the highest rate since 1995. Japan’s economic trajectory aligns with inflation targets, with possibilities for further increases depending on future economic projections.
Market implications include yen appreciation, carrying implications for yen-based transactions affecting global currencies. BTC and ETH prices displayed immediate volatility, reflecting broader market uncertainties related to the yen carry trade.
Cryptocurrency Market Braces for Volatility Amid BoJ Rate Changes
Did you know? Interest rate changes historically impact global liquidity and risk asset valuations, suggesting continued volatility influenced by monetary policy shifts.
Bitcoin (BTC) currently stands at $87,981.68 with a market cap of $1.76 trillion. BTC saw a 0.74% rise over 24 hours, though it experienced a 4.47% decline over seven days, according to CoinMarketCap. BTC’s trading hit a 33.95% change in its 24-hour trading volume, reflecting market volatility after BoJ’s announcement.
Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 12:43 UTC on December 19, 2025. Source: CoinMarketCapThe Coincu research team notes that this rate adjustment could potentially shift cryptocurrency market dynamics, particularly BTC and ETH. Historically, interest rate changes impact global liquidity and risk asset valuations, suggesting continued volatility influenced by monetary policy shifts and carry trade activities.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
Source: https://coincu.com/markets/bank-japan-interest-hike-2025/

