Japanese Central Bank positions Bitcoin for run at record

A unanimous decision by the Japanese central bank’s board of governors sets Bitcoin up for a possible leap to the all-time high of $74,000, which was reached for the first time in March this year.

We will see if the largest digital coin actually delivers as promised, but at the moment the parameters are quite good. Do note that geopolitical events can still throw a spanner in the works.

#Bitcoin / $BTC

bullieve pic.twitter.com/s9HN593bgj

— K A L E O (@CryptoKaleo) September 19, 2024

Tokyo

Crypto investors better send a thank you note to Bank of Japan Governor Ueda Kazuo. He emphasized that a new interest rate increase by the Japanese central bank should not be expected immediately.

Although Japan’s economy has been performing slightly less well for several years now (due to their rapidly aging population), every interest rate decision for the Yen is still decisive for the world stock markets at the moment.

Macro: Bank of Japan #BOJ Interest Rate Policy Rate held. No change. pic.twitter.com/toAx7PDdPg

— MartyParty (@martypartymusic) September 19, 2024

This is because American investors had borrowed money in Yen in recent years and then invested it in the United States. After all, Japanese interest rates are still incredibly low at 0.25%. That will remain the case for a while because after Tokyo’s decision at the end of July to raise interest rates by a quarter point only, the Japanese stock market (and those of Seoul and Taiwan) briefly collapsed. Bitcoin also fell from $65,000 to $50,000 that week. They don’t want to make the same mistake twice.

Disclaimer

Now we’re witnessing a reverse movement. The Federal Reserve cuts interest rates and the Bank of Japan leaves interest rates unchanged. The era of high interest rates (installed between 2021 and 2024) seem to be coming to an end for Western investors and it can therefore be expected that riskier investments such as Bitcoin, technology shares and crypto as a whole will do well in the coming weeks and months.

As always, we must end with a disclaimer. Do pay attention to what is happening in the Middle East (Lebanon and Israel seem to have started a new round of fighting) and Russia (in Ukraine) as always. Geopolitics can also determine the course of stock markets. Happy trading.