Bitcoin broke the $87,000 mark on Dec. 18 after the Bank of Japan lifted its policy rate, sending the yen sharply lower and adding to a volatile global market.

What Happened

The BOJ raised its policy rate to 0.25% after years of zero, pushing the yen down about 1.5% against the dollar. Bitcoin rallied roughly 3% in the same session, reflecting investors’ search for assets outside traditional fiat currencies.

Why It Matters for Bitcoin

Rate hikes tighten liquidity and often drive investors toward alternative assets like Bitcoin. The recent rally shows resilience even as the Fear & Greed Index sits at an extreme fear level of 16, indicating a cautious but still active market.

U.S. Angle

In the United States, the Federal Reserve’s policy stance and upcoming CPI releases remain key drivers of market sentiment. Meanwhile, the SEC continues to review Bitcoin ETF applications, and the dollar’s strength influences cross‑border flows. A stronger USD can pressure Bitcoin, but the recent surge suggests demand persists despite macro‑economic headwinds.

What to Watch Next

  • Fed’s next meeting and potential rate hikes
  • CPI releases and inflation expectations
  • SEC decisions on Bitcoin ETFs
  • Yen volatility and its spillover into crypto markets
  • Bitcoin’s on‑chain metrics (hashrate, active addresses)

Start Here

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Source

CoinDesk – Bitcoin jumps above $87,000, yen slides after Bank of Japan rate hike