Bitcoin (BTC) sought to reach $88,000 on Friday as the Bank of Japan raised interest rates to 30-year highs.

Key points:

• Bitcoin saw increases in harmony with US stock futures, reflecting a generally positive market reaction to Japan’s interest rate adjustment.
• Analysts believe further rate hikes are unlikely due to prevailing economic conditions.
• Bitcoin continues to stabilize over longer periods.

Arthur Hayes Discusses BTC and Yen Movement

Data from Cointelegraph Markets and TradingView indicated a 2.5% gain in BTC prices compared to the opening for the day.

BTC/USD one-hour chart. Source: Cointelegraph/TradingView

In a move aligning with forecasts, the Bank of Japan (BoJ) raised rates to approximately 0.75%, marking the peak of a decades-long period of low-interest rates in Japan.

“Don’t fight the BOJ: -ve real rates is the explicit policy,” Arthur Hayes said on social media.

“$JPY to 200, and $BTC to a milly.”

Source: Bank of Japan

Hayes, among multiple commentators, perceived the rate increase as ultimately advantageous for asset holders.

In addition, research from Temple 8 Research highlighted a growing gap between market forecasts and Japan’s economic realities, suggesting rates will likely remain stable until 2027.

“You cannot floor the gas (Fiscal Stimulus) while slamming the brakes (Rate Hikes),” criticized Temple 8.

“If rates go to 1.5%, interest payments on this new debt explode.”

USD/JPY one-hour chart. Source: Cointelegraph/TradingView

Bitcoin Missing a “True Capitulation Event”

Bitcoin surged alongside US stock futures ahead of Wall Street’s Friday kickoff.

At this point, Nasdaq 100 futures rose by 1.5%, while the S&P 500 sought to rebound from previous declines.

Nasdaq 100 futures one-hour chart. Source: Cointelegraph/TradingView

Despite ongoing strong market participation, some investor sentiment metrics shifted back toward fear, creating a supportive environment for potential gains as the year ends.

“While the S&P 500 felt weak recently, December typically concludes on a positive note historically.”

Equal weight S&P 500 chart. Source: Mosaic Asset Company

At the same time, BTC/USD reached a low of $84,390 amid fluctuations following unexpected US inflation data.

Analysts exhibited heightened caution, with discussions of potential support levels proliferating on social media.

Possible quick test of 80K underway.

Onchain analytics service Checkonchain cautioned that the Bitcoin market is still searching for a definitive capitulation event, identifying $81,000 as a crucial benchmark for US spot Bitcoin ETFs.

“The market has yet to witness a ’true capitulation event.’”

This article does not offer investment advice. All investment and trading actions carry risk, and individuals should perform due diligence when making decisions.