Bitcoin (BTC) targeted $88,000 on Friday after Japan's central bank raised rates of interest to their highest in 30 years.
Key points:
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Bitcoin joins US stock futures rising in a strangely optimistic response to Japan's rate of interest hike.
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Commentators argue that there shall be no further rate hikes on account of economic forces.
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Bitcoin continues to bottom for prolonged periods of time.
Arthur Hayes observes the rise in BTC price and the Yen
Data from Cointelegraph Markets and TradingView showed a BTC price increase of two.5% from the day's opening.
BTC/USD one-hour chart. Source: Cointelegraph/TradingView
As expected, the Bank of Japan (BoJ) raised rates of interest to around 0.75% that day, marking the very best level in three many years and ending the country's recent period of “low-cost” money.
Against the backdrop of worldwide easing of central bank policy, Japan's move stood out. Although the rise theoretically represented a headwind for crypto and risk assets, the response was optimistic.
“Don’t fight the BOJ: cutting real rates of interest is the express policy,” Arthur Hayes, former CEO of crypto exchange BitMEX, told X Followers.
“$JPY at 200 and $BTC at a mill.” 
Source: Bank of Japan
Hayes was certainly one of several commentators who viewed the rise as ultimately positive for asset holders.
In addition, the research project Temple 8 Research pointed to an emerging stalemate between market expectations and economic reality in Japan.
“The market is seeing a hawkish turn. We are seeing a policy cap,” it summarized in a blog post last week.
Temple 8 forecast that rates of interest wouldn’t be raised again until 2027 to guard the yen and avoid higher interest payments for Japan's latest $140 billion stimulus package.
“You can’t go full throttle (fiscal stimulus) while concurrently pumping the brakes (tariff increases),” the post continues.
“If rates of interest rise to 1.5%, the interest payments on this recent debt will explode.” 
USD/JPY 1-hour chart. Source: Cointelegraph/TradingView
Bitcoin lacks a “real capitulation event”
Bitcoin joined U.S. stock futures in an uptrend ahead of Wall Street's open on Friday.
At the time of writing, Nasdaq 100 futures were up 1.5%, while the S&P 500 was seeking to rebound after a flat performance.
One-hour chart for Nasdaq 100 futures. Source: Cointelegraph/TradingView
“With continued strong participation, some investor sentiment indicators are showing fear again, providing a positive backdrop for a rally in the ultimate weeks of the yr,” trading resource Mosaic Asset Company predicted in a blog post on Thursday.
“While the S&P 500 has been trading weakly recently, the second half of December tends to be positive from a historical seasonal perspective.” 
Equilibrium S&P 500 chart. Source: Mosaic Asset Company
At the identical time, BTC/USD hit a low of $84,390 amid volatility following the surprise US inflation data.
Traders remained extremely cautious and calls for further retests of support were common on social media.
Possible rapid test of 80K underway. $BTCUSD pic.twitter.com/KGL61fKOWD
— Aksel Kibar, CMT (@TechCharts) December 18, 2025
“Bitcoin is currently hitting bottom, but the method is way from complete,” on-chain analytics platform Checkonchain warned that day.
Checkonchain has highlighted $81,000, the price basis for U.S. spot Bitcoin exchange-traded funds (ETFs), as a key line.
It added that the market has not yet experienced a “true capitulation event.”
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This article doesn’t contain any investment advice or recommendations. Every investment and trading activity involves risks and readers should conduct their very own research when making their decision. While we try to offer accurate and up-to-date information, Cointelegraph doesn’t guarantee the accuracy, completeness or reliability of the data in this text. This article may contain forward-looking statements which can be subject to risks and uncertainties. Cointelegraph won’t be answerable for any loss or damage arising out of your reliance on this information.
