The Bank of Japan kept its key policy rate unchanged at 1%, while Governor Kazuo Ueda’s hawkish remarks had limited influence on markets as traders had already accounted for the possibility of an October rate increase.

“Worst hit in Bitcoin history”: Bitcoin users react to Coldcard wallet vulnerability

Guy Swann described the Coldcard wallet issue as one of the most severe events in Bitcoin’s history for knowledgeable users who had taken recommended security measures.

“This is not an exchange breach caused by exposed passwords or stolen keys. This involves thousands of people potentially having their private keys recreated without their consent,” Swann said.

He added that the incident carried a different level of impact compared with previous security failures.

David Lawrence said the affected users had followed best practices by studying Bitcoin, taking security precautions, moving funds away from government-controlled systems, and storing assets in hardware wallets — yet they were now facing the loss of their savings.

He warned that the incident could damage confidence in the broader vision of billions of people eventually using cold storage to secure their Bitcoin holdings.

Charlie Shrem said the event demonstrated that even advanced security methods cannot fully eliminate unknown future risks.

Jameson Lopp noted that warnings from security experts are often dismissed until a major breach actually happens.

He said that over long periods, unexpected problems can emerge, and anyone protecting significant wealth should account for every possible vulnerability.

Miles Suter from Block said the attacker appeared to be relatively inexperienced and expressed surprise that more complex attacks had not already appeared after details of the vulnerability became public.

He advised users to remain highly alert and treat the situation as requiring immediate attention.

Bitcoin falls back as Nasdaq extends rally

Bitcoin gave up its recent gains on Friday despite continued strength in U.S. technology stocks.

The Nasdaq remained higher even after Apple shares dropped 8% following its earnings update, with Amazon helping support the index after climbing 11.6% on strong cloud results and better-than-expected guidance.

Nasdaq 100 futures were trading 1.2% higher about two hours before U.S. markets opened.

Crypto markets moved lower, with Bitcoin declining 1% over the previous day to around $63,900, while Ether dropped 1.7% to about $1,884.

WTI crude oil prices moved back toward the week’s peak, trading just below $85 per barrel as investors appeared to build positions ahead of the weekend amid possible Middle East tensions.

Treasury yields also increased, with the 30-year U.S. Treasury yield approaching a 19-year high of 5.22%.

Fed’s inflation gauge stays above target for 64 months

The Federal Reserve continues working toward its 2% inflation goal, but recent economic data shows that price pressures remain persistent.

The core personal consumption expenditures (PCE) index, the Fed’s preferred inflation indicator, rose 3.3% year over year in June, according to data released Thursday. While slightly lower than May’s 3.4% reading, the figure remains well above the central bank’s target.

The extended period of elevated inflation has helped keep bond yields high and reduced appetite for risk assets such as cryptocurrencies.

Bitcoin remains near $64K following BOJ rate decision

Bitcoin traded around $63,900 on Friday after the Bank of Japan held rates steady at 1%, while Ueda’s more hawkish tone failed to generate a significant market reaction.

The yen weakened after giving up its earlier gains during Ueda’s press conference, with the dollar-yen pair returning close to previous levels as investors had already positioned for a potential October hike.

Ueda said inflation could exceed 2% later in the fiscal year and pointed to AI-related demand and the weaker yen as factors contributing to higher prices — two themes that have influenced market trends and crypto sentiment throughout the month.

A weaker yen has continued to support carry-trade flows into risk assets, while the AI investment cycle remains a major driver that Bitcoin has closely tracked.

The broader crypto market remained relatively calm. Ether traded near $1,885, while BNB continued its strong performance among major cryptocurrencies, rising 3.5% on the day and 4.4% over the week to approximately $591.