Bitcoin and ether pushed through key technical thresholds on Friday, extending gains alongside Asian equities after the Bank of Japan lifted interest rates to their highest level in three decades and softer U.S. inflation data reignited demand for risk assets.

Bitcoin traded above $87,000 during Asian hours, while ether advanced with broader market strength, as investors largely shrugged off the BOJ’s well-flagged policy move and instead focused on signs of easing global financial conditions.

Major altcoins also moved higher. Cardano’s ADA, Solana’s SOL, dogecoin, BNB and XRP rose by as much as 3%, while the CoinDesk 20 Index climbed 2%, reflecting broad-based participation in the rally.

The advance followed a choppy but range-bound session that triggered more than $576 million in crypto liquidations over the past 24 hours, according to CoinGlass, with losses concentrated mainly in long positions. The scale of the liquidations highlights how crowded positioning had become during the recent rebound, with heavy leverage still widely used to chase relatively modest gains.

In Japan, the 10-year government bond yield briefly touched 2% for the first time since 2006 after the central bank raised its benchmark rate, a move widely anticipated after weeks of hawkish guidance from Governor Kazuo Ueda. Markets absorbed the decision smoothly, with the yen weakening and regional equities moving higher.

The MSCI Asia Pacific Index rose 0.7%, led by technology stocks, while U.S. equity futures extended their rebound. The S&P 500 gained 0.8% and the Nasdaq 100 jumped 1.5%, supported by an upbeat outlook from Micron Technology that helped ease concerns around artificial intelligence spending and stretched valuations.

Risk appetite was further buoyed by softer U.S. inflation data, reinforcing expectations that the Federal Reserve could begin cutting rates in the coming months.

On-chain signals also point to easing pressure. According to K33 Research, long-term bitcoin holders appear close to ending an extended distribution phase, after roughly 20% of supply rotated back into the market over the past two years.

Still, caution remains elevated. The latest rebound appears driven more by macro relief than strong conviction, leaving crypto markets vulnerable to sharp swings as year-end approaches amid thinner liquidity and persistently high leverage.