Bank of Japan Maintains Interest Rate Hike Stance

Bank of Japan Governor Kazuo Ueda stated on January 5, 2026, that interest rate hikes will continue, provided economic and price trends meet forecasts, during a speech in Japan.

The BOJ’s stance may impact global markets, including cryptocurrencies like Bitcoin, which surged above $93,000, reflecting potential influence on yen carry trades and broader risk assets.

BOJ’s Rate Hikes and Impact on Cryptos

Kazuo Ueda, Bank of Japan Governor, reaffirmed the institution’s decision to maintain the pace of interest rate hikes if economic conditions align with forecasts. “The BOJ expects to continue its pace of interest rate hikes if economic and price trends align with forecasts,” Ueda stated during a keynote address to Japan’s banking sector.

After ending negative rate policies in 2024 and subsequent rate hikes, the BOJ aims to adjust monetary strategies based on economic indicators. This could tighten liquidity and influence markets reliant on yen-based carry trades.

The cryptocurrency market reacted, with Bitcoin surpassing $93,000. Financial analysts are examining potential consequences on risk assets, including altcoins and decentralized finance tokens, tied to yen trading activities.

Bitcoin Soars as BOJ Plans Further Hikes

Did you know? The Bank of Japan’s policy shift in 2024 significantly pressured yen carry trades, impacting Bitcoin and leading to substantial fluctuations in its valuation during that period.

Bitcoin (BTC) is currently priced at $92,960.40, with a market cap of “1.86 trillion”. Over the past 90 days, BTC has seen notable volatility, with a price change of -25.24%, as reported by CoinMarketCap.

The Coincu research team predicts that continued BOJ rate hikes could pressurize global liquidity, potentially impacting cryptocurrency volatility. Historical patterns suggest a correlation between policy shifts and digital asset price movements.