Bitcoin and ether climbed above key technical levels on Friday, tracking gains in Asian stocks after the Bank of Japan raised interest rates to their highest level in three decades and cooling U.S. inflation data revived interest in risk assets.
Bitcoin rallied above $87,000 in Asian trading, while Ethereum advanced amid broader market strength as investors turned away from the Bank of Japan’s long-telegraphed moves and instead focused on easing global financial conditions.
Cardano’s ADA, Solana’s SOL, Homestay and Gains were as high as 3%, with the broad-based CoinDesk 20 index rising 2%.
The rise follows a choppy but relatively range-bound trading day that saw more than $576 million in cryptocurrency liquidations in 24 hours, mostly concentrated on long positions, according to CoinGlass data.
This liquidation flow illustrates how crowded positions have become during the recent rally, with the use of high leverage still dominating albeit to capture small gains.
Japan’s 10-year government bond yield briefly touched 2% for the first time since 2006 after the Bank of Japan raised its benchmark interest rate, a move widely expected after weeks of hawkish signals from Governor Kazuo Ueda.
Rather than panicking the market, the decision was absorbed smoothly, with the yen weakening and Asian stocks rising.
MSCI’s Asia Pacific index rose 0.7%, led by technology stocks, while futures tracking U.S. stocks extended their rebound overnight. Micron Technology’s strong outlook eased concerns about artificial intelligence spending and overvaluation, with the S&P 500 rising 0.8% and the Nasdaq 100 rising 1.5%.
Risk sentiment was further supported by weak U.S. inflation data, which reset expectations that the Federal Reserve may begin cutting interest rates in the coming months.
Meanwhile, on-chain data suggests some pressure may be easing.
According to data from K33 Research, long-term Bitcoin holders are about to end a lengthy sell-off phase after about 20% of the supply returned to the market over the past two years.
Still, traders remained cautious. The recent rally has been driven more by macro easing than belief, leaving cryptocurrencies vulnerable to sharp swings as markets head into year-end with reduced liquidity and rising leverage.
