BOJ Rate Hike to 1.25% Sparks Yen Rally, Bitcoin Holds Firm

The Bank of Japan (BOJ) is widely expected to raise its policy rate to 1.25%, the highest level since April 1995, at its meeting on Thursday and Friday.

Japan's short-term bond yields have already skyrocketed ahead of the decision, with the six-month bill yield closing near 1.335% on Friday.

This is a significant increase from two years ago, when the same maturity traded below zero.

The BOJ hike would set policy five times higher than the August 2024 rate hike to just 0.25%, which sent the Nikkei down 12.4% in one session and Bitcoin from about $70,000 to $49,000.