Bitcoin Price Unmoved as Bank of Japan Leaves Interest Rate Steady

Bitcoin (BTC) showed little movement on Wednesday after the Bank of Japan (BOJ) decided to keep its benchmark interest rate at 0.5%, aligning with market expectations. Policymakers remain cautious amid uncertainty surrounding the potential economic impact of U.S. trade policies under President Donald Trump.

BOJ Governor Kazuo Ueda highlighted “substantial uncertainties” in the global economy, emphasizing that the central bank will closely monitor how evolving trade policies could affect Japan’s financial markets and broader economic stability.

The BOJ’s announcement comes just ahead of a key U.S. Federal Reserve meeting, where no changes to interest rates are expected. The Fed’s decision will be closely watched as markets gauge the potential influence of Trump’s tariff measures on global trade and economic growth.

Bitcoin’s price has historically been influenced by Japan’s monetary policy and bond yields. A stronger yen and rising yields typically draw investors toward traditional assets, while a stable or depreciating yen often enhances Bitcoin’s appeal as an alternative store of value.

Earlier this year, when the BOJ implemented a rate hike, Bitcoin remained resilient, as investors focused on potential shifts in U.S. economic policy under Trump’s administration.

With Wednesday’s decision keeping Japanese bond yields steady, Bitcoin faces minimal immediate pressure, maintaining its current trading range.