Crypto markets hold steady as investors digest Bank of Japan's rate hike

Cryptocurrency markets remained steady on Friday, with Bitcoin holding above the $87,000 mark. The broader market reflected the digestion of the Bank of Japan's 25-basis-point rate hike, a move that, analysts said, had been anticipated, especially after recent selling pressure linked to the unwinding of the yen carry trade.

 

At the time of writing, Bitcoin was trading at $87,794.18, reflecting a 0.94 per cent increase over the last 24 hours. The digital currency fluctuated between $85,107 and $89,412 during the session. Despite Bitcoin’s market capitalisation falling short of the $2 trillion mark, at $1.75 trillion, it remains the largest cryptocurrency by market cap.

 

Ethereum, on the other hand, outperformed Bitcoin, posting a 3.57 per cent gain. The second-largest cryptocurrency was trading at $2,938, with a 24-hour turnover of $35.99 billion. Ethereum fluctuated between $2,777 and $2,994 during the same period, according to data from CoinMarketCap.

 

A more positive sentiment spread across the market following the cooler-than-expected US inflation data. According to Akshat Siddhant, lead quant analyst at Mudrex, “At current levels, Bitcoin’s price suggests that markets have digested the Bank of Japan’s 25bps rate hike. This was largely priced in, with the unwinding of the yen carry trade already underway. Now that the final major macro event for the year is out of the way, and the CPI print came in cooler-than-expected, we could see a relief rally across the market in the coming days.”    Bitcoin ETFs recorded $457 million in net inflows, which, Siddhant believes, could help push Bitcoin past the $90,000 mark. "If this happens, bulls would likely regain control, paving the way for further upside. $84,000 remains a strong support zone for the moment,” said Siddhant.

 

However, the market also saw some volatility following the softer-than-expected US inflation data. CoinSwitch Markets Desk noted, “Despite the CPI-driven rally, Bitcoin sold off as leverage and crowded short-term positioning played a role in halting the momentum. Bitcoin initially moved higher, toward the $89,000 area, but failed to hold those levels. Once the upside momentum stalled, stop-losses and liquidations triggered a wave of selling.” 

Bitcoin faces resistance at $88,500–$89,000

 

CoinSwitch Markets Desk expects volatility to remain elevated in the near term, with prices likely staying range-bound as leverage clears. “Technically, we’ve seen sharp rejection near the $89K mark, with strong support around $85,000 and resistance in the $88,500–$89,000 range. Investors should avoid chasing breakouts, keeping leverage low, and waiting for stabilisation before adding positions,” the desk added.

 

Altcoin markets trade mixed

 

Altcoin markets reflected mixed sentiment on Friday, with some tokens making notable gains while others struggled. Bitcoin Cash (BCH), UNUS SED LEO (LEO), Canton (CC), World Liberty Financial (WLFI), Merlin Chain (MERL), Morpho (MORPHO), Zcash (ZEC), Story (IP), Ethereum (ETH), Midnight (NIGHT), Filecoin (FIL), Lido DAO (LDO), Sky (SKY), Dogecoin (DOGE), KuCoin Token (KCS), Stellar (XLM), Ether.fi (ETHFI), Aptos (APT), Sui (SUI), Cronos (CRO), VeChain (VET), Pi (PI), Avalanche (AVAX), Injective (INJ), Bitcoin (BTC), OFFICIAL TRUMP (TRUMP), Worldcoin (WLD), XRP (XRP), SPX6900 (SPX), and Binance Coin (BNB) were among the leaders, rallying by up to 9 per cent, according to CoinMarketCap.

 

Conversely, MYX Finance (MYX), MemeCore (M), Mantle (MNT), Render (RENDER), Starknet (STRK), Cosmos (ATOM), Optimism (OP), Toncoin (TON), Curve DAO Token (CRV), Immutable (IMX), Dash (DASH), Flare (FLR), Celestia (TIA), Shiba Inu (SHIB), Pump.fun (PUMP), Aster (ASTER), Aerodrome Finance (AERO), Polygon (POL), Ondo (ONDO), Sei (SEI), Hyperliquid (HYPE), Uniswap (UNI), Bonk (BONK), Jupiter (JUP), Monero (XMR), Polkadot (DOT), Tezos (XTZ), Bitget Token (BGB), Litecoin (LTC), and Pepe (PEPE) were among the laggards, trading lower by up to 8 per cent.