The Bank of Japan raised rates to 1.0% — the highest in 31 years. Global markets are watching closely.
Japan's last rate at this level was 1995. The BOJ was one of the last central banks to exit zero-rate policy.
Japan's low rates funded the yen carry trade — borrowing cheap yen to buy risk assets including crypto. That's unwinding.
Higher Japanese rates could force a carry trade unwind, triggering selling of risk assets globally including Bitcoin.
Investors ignored the hike today, focused on the US FOMC. But watch for delayed carry trade effects over 2 weeks.