The Bank of Japan Raises Its Rates to an Unprecedented High Since 1995

The era when Japan’s ultra-low rates served as cheap fuel for global speculation now seems over. The Bank of Japan has indeed just raised its key rate to nearly 1%, a level never reached since 1995. Crypto analysts already agree on one point: the consequences could exceed what the market anticipates.

The Bank of Japan hardens its stance after thirty years of lethargy

On June 16, 2026, the monetary policy board of the BOJ voted 7 to 1 to raise the key rate to around 1% effective June 17, 2026. This quarter-point increase brings the rate to its highest level in over thirty years.

That’s not all! The BOJ also confirmed its intention to reduce its government bond purchases by 200 billion yen per quarter until early 2027. This amounts to about 1.3 billion dollars.

The carry trade wavers, but the crypto ecosystem refuses to fold

The BOJ’s rate hikes have historically weighed on crypto assets. They indeed trigger the unwinding of the carry trade on the yen.

Analysis: investors borrow cheap yen to buy more profitable assets abroad. They profit from the interest rate differential as long as the currency remains weak. When rates rise, these positions unwind and risky assets (including cryptocurrencies) fall.

This time, this scenario did not happen. The carry trade on the yen caused no significant disruption either in the crypto market or in global equities. And for good reason, investors refused to panic.

Another explanation: the current rise had already been priced in before the announcement. In other words, the crypto market had already anticipated this event.

Another factor cushioned the shock: President Trump’s announcement of an agreement with Iran this weekend. This triggered a crypto relief rally that pushed the bitcoin price above $65,000. The signing is expected on Friday.

Three macroeconomic variables to watch in the coming days

The absence of an immediate correction does not mean a total immunity of the crypto market to this paradigm shift. Investors must monitor the narrowing yield gap between Japanese bonds and US Treasury bonds.

A sharp rise of the Yen could prompt major hedge funds to liquidate their collateral assets. The global liquidity available on the international market remains the main growth driver for bitcoin.

Reports from the firm Glassnode indicate stable accumulation despite major macroeconomic turmoil in Asia. The response of fund managers in New York in the coming days will thus validate or invalidate this trend.

In any case, Japan just sent a strong signal to global markets. For bitcoin, the absence of a sharp reaction may be the most striking fact. The question remains whether this resilience reflects true maturity of the crypto market or simply a temporary calm before a new phase of volatility.