The Bank of Japan maintained its benchmark interest rate at 1%, while Governor Kazuo Ueda’s hawkish tone had little impact on markets as investors had already largely priced in a potential rate hike in October.
“Worst hit in Bitcoin history”: Bitcoin community responds to Coldcard wallet vulnerability
Guy Swann described the incident as one of the most severe events in Bitcoin’s history for experienced users who followed recommended security practices.
“This is not a case of an exchange being compromised because of leaked credentials. This involves thousands of users potentially having their private keys recreated from beneath them,” Swann said.
He added that the situation was particularly painful for those affected.
David Lawrence said the victims had taken the right steps by educating themselves about Bitcoin, securing their holdings, separating funds from traditional financial systems, and using hardware wallets — only to face the possibility of losing their savings.
He warned that the incident could damage the long-term vision of widespread Bitcoin adoption through cold storage, saying confidence in that approach had suffered a major blow.
Charlie Shrem said the event highlighted the limits of relying solely on randomness and encryption to guarantee future security.
Jameson Lopp noted that security experts often issue warnings that are overlooked until a major failure occurs.
He said that vulnerabilities are unavoidable over long periods and that anyone storing significant wealth should prepare for even unlikely scenarios by reducing potential risks.
Miles Suter of Block suggested the attacker appeared to have limited sophistication and questioned why more advanced exploits had not yet appeared after the vulnerability became widely known.
He emphasized that users should continue exercising extreme caution and treat the issue with urgency.
Bitcoin retreats despite continued Nasdaq strength
Bitcoin gave back its recent gains on Friday even as U.S. technology stocks continued moving higher.
The Nasdaq remained on track for additional gains despite Apple shares dropping 8% after its earnings report.
Amazon helped support the index, rising 11.6% after delivering stronger-than-expected results and issuing a better-than-forecast outlook.
Nasdaq 100 futures were trading 1.2% higher roughly two hours before the U.S. market opened.
Crypto markets moved lower, with Bitcoin declining 1% over the previous 24 hours to around $63,900, while Ether fell 1.7% to approximately $1,884.
Oil prices also moved higher, with WTI crude returning close to the week’s peak just below $85 per barrel as traders appeared to position themselves ahead of the weekend amid concerns about potential Middle East developments.
Bond yields climbed as well, with the 30-year U.S. Treasury yield nearing a 19-year high of 5.22%.
Core inflation remains above Fed’s target for 64 straight months
The Federal Reserve continues to focus on bringing inflation down to its 2% objective, but recent economic data shows the path remains difficult.
Data released Thursday showed the core personal consumption expenditures (PCE) index, the Fed’s preferred inflation gauge, increased 3.3% annually in June. While slightly below May’s 3.4% reading, inflation remains significantly above the central bank’s target.
The continued period of elevated inflation has contributed to higher bond yields and reduced the appeal of risk assets, including cryptocurrencies.
Bitcoin stays near $64K after BOJ holds rates steady
Bitcoin traded near $63,900 on Friday, remaining mostly stable after the Bank of Japan kept rates unchanged at 1% and Ueda’s hawkish comments failed to create a major market reaction.
The yen surrendered earlier gains during Ueda’s remarks, with the dollar-yen pair returning near previous levels as traders had already anticipated a possible October rate increase.
Ueda said inflation could move above 2% later this fiscal year and pointed to rising AI demand and a weaker yen as factors that could keep prices elevated — two themes that have influenced broader market sentiment and crypto trends.
A weaker yen has supported carry-trade flows into risk assets, while the AI investment cycle has remained a key market driver that Bitcoin has closely tracked.
The wider crypto market remained relatively calm. Ether traded near $1,885, while BNB continued its strong performance among major tokens, rising 3.5% on the day and 4.4% over the week to around $591.
