Bitcoin and ether climbed above key technical levels on Friday, tracking gains in Asian shares after the Bank of Japan raised interest rates to their highest level in three decades and cooling US inflation data revived appetite for risk assets.
Bitcoin rose above $87,000 in Asian trade, while ether pushed higher alongside broader market strength as investors looked past the BOJ’s long-telegraphed move and instead focused on easing global financial conditions.
Cardanos ADA, Solanas SOL, Bnb and rose a whopping 3%, with the broad-based CoinDesk 20 index up 2%.
The move higher came after a volatile but relatively range-bound session that saw more than $576 million in crypto liquidations over 24 hours, largely concentrated in long positions, per CoinGlass.
Such liquidation flows are indicative of how crowded positioning had become during the recent recovery, and the use of high leverage remains dominant, albeit for small gains.
Japan’s 10-year government bond yield briefly touched 2% for the first time since 2006 after the central bank raised its benchmark interest rate, a move that had been widely expected after weeks of hawkish signals from Governor Kazuo Ueda.
Instead of spooking markets, the decision was absorbed smoothly, with the yen weakening and Asian shares rising.
The MSCI Asia Pacific Index rose 0.7%, led by technology stocks, while futures that track U.S. stocks extended their overnight gains. The S&P 500 rose 0.8% and the Nasdaq 100 rose 1.5%, helped by a strong outlook from Micron Technology that eased fears about artificial intelligence spending and stretched valuations.
Risk-on sentiment was further supported by softer US inflation data, which reset expectations that the Federal Reserve could start cutting interest rates in the coming months.
Meanwhile, on-chain data suggests some pressure may be easing.
Long-term bitcoin holders are close to ending an extended selling phase, according to K33 Research, after about 20% of supply has returned to the market over the past two years.
Still, traders remain cautious. Recent returns have been driven more by macro relief than conviction, leaving crypto vulnerable to sharp moves as markets enter the end of the year with thinner liquidity and increased leverage.
