The Bank of Japan raised its benchmark interest rate to 1% on June 16, the highest level since 1995. Bitcoin briefly dipped on the news but quickly rebounded to around $66,000, showing resilience in the face of tighter monetary policy from a major central bank.
BOJ's historic hike
The rate increase takes Japan's benchmark to levels not seen in over three decades. The move came as the BOJ continues to unwind its ultra-loose monetary policy, a shift that has been closely watched by global markets. For crypto, the immediate reaction was a small dip, but it didn't last.
Bitcoin's quick recovery
Bitcoin dropped shortly after the announcement, but within hours it was back above $66,000. That's a sign that the market had largely priced in the hike or that traders saw it as a one-off move rather than the start of an aggressive tightening cycle. Either way, the selloff was short-lived.
Polymarket's near-certainty
Prediction market Polymarket assigned a 99.95% probability that Bitcoin would remain above $56,000. That level of confidence suggests the market sees very little risk of a major crash in the near term, even with the BOJ's shift. It's a bet that the rate hike won't trigger a broader crypto selloff.
For now, Bitcoin is holding above $66,000, and Polymarket's odds reflect a market that expects it to stay above $56,000. The BOJ's next move remains an open question, but this time around, crypto barely flinched.
