Key facts
- Bitcoin traded near $63,900, showing little movement.
- The Bank of Japan held its benchmark interest rate steady at 1%.
- BOJ Governor Kazuo Ueda indicated inflation would exceed 2% this fiscal year.
- The weak yen and AI demand were identified as drivers of price increases.
- The yen's earlier gains against the dollar were reversed after Ueda's remarks.
- BNB extended its gains to approximately $591, up 3.5% for the day.
Bitcoin held its ground near $63,900 on Friday, largely unmoved as the Bank of Japan maintained its benchmark interest rate at 1%. Governor Kazuo Ueda's commentary, which touched on inflation exceeding 2% this fiscal year and cited AI demand and the weak yen as upward price pressures, did not significantly sway market sentiment.
The yen, which had seen some gains during Ueda's press conference, reversed its move, with the dollar-yen pair returning to its starting point. Traders had already largely factored in the possibility of an October rate hike.
The yen carry trade, a strategy where investors borrow cheaply in yen to invest in higher-yielding assets globally, has been a significant factor supporting risk assets like cryptocurrencies. A persistently weak yen has fueled this trade, and the capital flow into AI-related sectors has closely tracked Bitcoin's performance.
In broader market movements, Ether remained near $1,885. BNB stood out among larger tokens, extending its gains to approximately $591, marking a 3.5% increase for the day and 4.4% for the week.