Bitcoin and ether climbed above key technical levels on Friday, tracking gains in Asian stocks after the Bank of Japan raised interest rates to their highest level in three decades and cooling U.S. inflation data revived appetite for risk assets.
Bitcoin topped $87,000 in Asian trading, while ether advanced alongside broader market strength as investors ignored the BOJ’s long-telegraphed decision and instead focused on easing global financial conditions.
ADA from Cardano, SOL from Solana, bnb And rose 3%, with the overall CoinDesk 20 index up 2%.
The rise came after a volatile, but relatively limited, session that saw more than $576 million in crypto liquidations over 24 hours, largely concentrated in long positions, according to CoinGlass.
Such liquidation flows are indicative of the extent of crowded positioning during the recent rally, and the use of high leverage remains dominant, even if it allows for small gains.
The yield on Japan’s 10-year government bonds briefly touched 2% for the first time since 2006 after the central bank raised its benchmark rate, a move widely expected after weeks of hawkish signals from Governor Kazuo Ueda.
Rather than spooking markets, the decision was absorbed smoothly, with the yen weakening and Asian stocks rising.
The MSCI Asia-Pacific index gained 0.7%, led by technology stocks, while futures tracking U.S. stocks extended their rebound overnight. The S&P 500 rose 0.8% and the Nasdaq 100 rose 1.5%, helped by Micron Technology’s strong outlook that eased fears about artificial intelligence spending and strained valuations.
Risk sentiment was also supported by weak U.S. inflation data, which reset expectations that the Federal Reserve could begin cutting rates in the coming months.
Meanwhile, on-chain data suggests some pressure may be easing.
According to K33 Research, long-term bitcoin holders are about to end a prolonged selling phase, after around 20% of supply returned to the market over the past two years.
Traders nevertheless remain cautious. The latest rebound was driven more by macroeconomic relief than conviction, leaving the crypto vulnerable to sharp moves as markets enter the end of the year with thinner liquidity and high leverage.
