Bitcoin Remains Stable Amid Bank Of Japan's Rate Hike

According to CoinDesk, Bitcoin (BTC) maintained stability during Friday's Asian trading hours following the Bank of Japan's (BOJ) decision to increase the benchmark borrowing cost to its highest level in 17 years. The BOJ also raised its inflation forecasts, signaling a potential continuation of rate hikes. The policy statement indicated that if the economic outlook aligns with the January Outlook Report, the Bank would persist in raising the policy interest rate and adjusting monetary accommodation, citing a positive outlook on wages. The Japanese yen, known for its anti-risk properties, appreciated by over 0.6% to 155.12 against the U.S. dollar after the rate decision. Despite this, risk assets, including Bitcoin, showed resilience. Bitcoin traded with little change, remaining above $104,000, while futures linked to the S&P 500 also remained flat. This stability in risk assets suggests that market focus is increasingly shifting towards potential policy changes under Donald Trump's presidency. Previously, the BOJ's rate hike in late July had caused volatility in risk assets, including cryptocurrencies. In related developments, President Trump signed an executive order on Thursday to ban the digital dollar and promote innovation in cryptocurrency and artificial intelligence within the U.S. Meanwhile, recent U.S. data revealed that the "all tenant rent" index, a precursor to shelter inflation in the Consumer Price Index (CPI), increased at a slower rate last quarter. This has fueled optimism that the Federal Reserve might reconsider its aggressive rate forecasts from December.