BOJ Stays Put, Yen Yawns, and Bitcoin Refuses to Budge 🪨

The Bank of Japan left its benchmark interest rate at 1% on Friday, and Bitcoin barely flinched, holding near $63,900 as Governor Kazuo Ueda's effort to strike a hawkish tone at his press conference left the yen largely unchanged. The dollar-yen pair returned to where it started before Ueda spoke, reflecting market expectations that a rate hike is more likely to come at the October meeting, the one traders had already priced in. Ueda said inflation should rise above 2% later this fiscal year, citing AI-related demand and the weak yen as the two forces pushing prices higher, the same macro threads that have shaped crypto's backdrop this month.

A softer yen has supported the carry trade that channels capital into risk assets, while the AI capital expenditure cycle has been the dominant trade Bitcoin has tracked. Ether held near $1,885, while BNB extended its run as the standout among large tokens, rising 3.5% on the day and 4.4% on the week to around $591, according to CoinDesk data. Broader spot volumes remained muted, with no major catalysts lined up before next week's U.S. inflation print.