The Bank of Japan (BOJ) has opted to keep interest rates unchanged due to ongoing global market volatility, according to Deputy Governor Shinichi Uchida.
This decision followed market turbulence fueled by speculation about potential rate hikes, which had negatively impacted the crypto market.
Arthur Hayes, co-founder of BitMEX, linked the BOJ’s stance to the upcoming U.S. elections. On the social media platform X, Hayes claimed that U.S. Treasury Secretary Janet Yellen urged Uchida not to raise rates, aiming to avoid further market disruption ahead of the 2024 elections.
Hayes suggested this move was intended to support Democratic candidate Kamala Harris, who has a 47% chance of winning according to Polymarkets, compared to Trump’s 52%.
Hayes also hinted that Yellen might inject between $300 billion to $1.05 trillion into the economy by year-end. He plans to detail this in an essay titled “Spirited Away” after the US Treasury’s Quarterly Refunding Announcement.
In response to the BOJ’s rate decision, Bitcoin (BTC) initially plummeted to around $49,000 but has since recovered to around $57,500.
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