Will Japan’s Central Bank Spark a Crypto Rally?

The Bank of Japan (BOJ)'s upcoming monetary policy meeting, set for June 16–17, could be the next major catalyst for global risk assets, including stocks and cryptocurrencies like Bitcoin.

Arthur Hayes, co-founder of BitMEX, predicts a significant market “flight” if the BOJ decides to delay its current quantitative tightening (QT) plans and instead re-engage in selective quantitative easing (QE) at this meeting.

QE involves central banks pumping money into the economy, typically boosting asset prices. The BOJ had planned to cut bond purchases starting August 2024, but this June meeting is an interim review, creating a window for a policy shift.

Reports suggest officials are considering slowing the pace of these cuts.

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This isn’t just speculation. Recent market behavior shows a strong link between Japan’s bond market and Bitcoin’s performance. Bitcoin hit $112,000 on May 22, just after Japanese 30-year bond yields peaked.

Experts like Bitwise’s André Dragosch suggest rising bond yields signal fiscal stress, prompting institutions to view Bitcoin as a “counterparty risk-free” hedge against sovereign default.

A more dovish BOJ stance could reinforce Bitcoin’s appeal, potentially driving it higher.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.