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Bitcoin Price Little Changed as Bank of Japan Keeps Interest Rate Steady

BY Coindesk | ECONOMIC | 03/19/25 04:44 AM EDT By Shaurya Malwa

The bitcoin (BTC) price showed little reaction after the Bank of Japan (BOJ) held its benchmark interest rate unchanged at 0.5% on Wednesday, a decision that aligned with market expectations, as policymakers assessed the potential impact of U.S. tariffs under President Donald Trump on Japan?s export-driven economy.

The BOJ highlighted ?high uncertainties? surrounding trade policies, with Governor Kazuo Ueda emphasizing the need to monitor how the tariff plans could ripple through global and Japanese markets.

The decision comes ahead of a U.S. Federal Reserve meeting, where rates are also expected to remain steady as Trump?s tariff policies loom large.

Japan?s monetary policy and bond yields have historically been a key influence for BTC markets. When the BOJ raised rates in January, it sparked brief bitcoin price dips as higher yields bolstered the yen and reduced the appetite for risk assets.

Wednesday?s rate decision keeps Japanese bond yields in check, limiting pressure on bitcoin?s price. A stronger yen and rising yields tend to weigh on bitcoin by attracting capital to traditional assets while a stable or weaker yen supports the cryptocurrencies' appeal as an alternative store of value.

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

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