Bitcoin and ether advanced on Friday, clearing key technical levels as Asian equities rallied after the Bank of Japan lifted interest rates to their highest point in about three decades, while softer U.S. inflation data helped reignite demand for risk assets.
Bitcoin traded above $87,000 during Asian hours, with ether rising in step with broader markets. Investors largely looked past the BOJ’s widely anticipated policy move, shifting attention to signs that global financial conditions are becoming more accommodative.
Strength spread across the altcoin market. Cardano’s ADA, Solana’s SOL, dogecoin, BNB and XRP climbed by as much as 3%, while the CoinDesk 20 Index gained 2%, underscoring the broad-based nature of the move.
The rally followed a volatile yet largely range-bound session that saw more than $576 million in crypto liquidations over the past 24 hours, according to CoinGlass. Liquidations were concentrated mainly in long positions, highlighting how crowded positioning had become during the recent rebound and the continued prevalence of high leverage aimed at capturing incremental gains.
In Japan, the 10-year government bond yield briefly touched 2% for the first time since 2006 after the central bank raised its benchmark rate, a step that had been clearly signaled following weeks of hawkish commentary from Governor Kazuo Ueda. Markets digested the decision smoothly, with the yen weakening and regional equities moving higher.
The MSCI Asia Pacific Index rose 0.7%, led by technology stocks, while U.S. equity futures extended their recovery. The S&P 500 advanced 0.8% and the Nasdaq 100 jumped 1.5%, supported by an upbeat outlook from Micron Technology that helped ease concerns about artificial intelligence spending and elevated valuations.
Risk sentiment was further underpinned by softer U.S. inflation data, reinforcing expectations that the Federal Reserve could begin easing policy in the coming months.
On-chain indicators also suggest selling pressure may be fading. According to K33 Research, long-term bitcoin holders appear close to completing a prolonged distribution phase, after roughly 20% of supply rotated back into the market over the past two years.
Despite the improved tone, caution persists. The latest upswing appears driven more by macro relief than firm conviction, leaving crypto markets susceptible to sharp swings as year-end approaches amid thinner liquidity and elevated leverage.
