Bank of Japan Expected to Raise Rates to 1.25% as Bitcoin Holds Steady

The Bank of Japan is widely expected to raise its policy rate to 1.25% this week, the highest level since 1995, following a sharp rise in short-term bond yields. While Japanese financial markets are repricing, Bitcoin (BTC) has yet to show a significant reaction to the tightening cycle. Economists anticipate further rate hikes, with projections reaching 1.50% by March 2027, driven largely by fiscal supply pressures rather than inflation.