Bitcoin Steadies Near $64K as BoJ Maintains 1% Rate

Bitcoin remained relatively stable at around $63,900 on Friday as Japan's central bank kept its benchmark interest rate at 1%. The decision allowed the yen carry trade to continue, with money flowing into risk assets. Bank of Japan Governor Kazuo Ueda attempted to sound hawkish but his words did not have a significant impact on markets.

The yen gave back its earlier gains during Ueda's press conference, and the dollar-yen pair returned to its starting point before the announcement. Traders had already priced in a high chance of an interest rate hike by October, which reduced the surprise effect of Ueda's comments.

Ueda stated that inflation is expected to rise above 2% later this fiscal year, citing AI demand and a weak yen as drivers of price increases. These factors have been key themes in the cryptocurrency market over the past month, with the AI capital cycle closely tied to Bitcoin's performance.

The broader market was quiet, with Ether holding steady at around $1,885 and BNB continuing its strong run, up 3.5% on the day and 4.4% on the week to approximately $591.