Crypto Waves: Bitcoin, Ethereum, and Others Ride the Asian Market Surge

Bitcoin and Ethereum Lead Gains

Cryptocurrencies like Bitcoin and Ethereum saw a significant boost recently as Asian markets reacted to Japan's interest rate hike. The Bank of Japan raised rates to the highest level in 30 years, a move that was widely expected. Instead of scaring investors, this led to gains in Asian stocks and cryptocurrencies.

• Bitcoin climbed above $87,000 in Asia.
• Ethereum also saw gains.
• Other cryptocurrencies like Cardano's ADA, Solana's SOL, and XRP rose by up to 3%.
• The CoinDesk 20 index pushed up by 2%.

Market Volatility and Liquidations

The market had been volatile, with over $576 million in crypto positions liquidated in 24 hours. Most of these were long positions, indicating that many traders were betting big on a price increase but were also using a lot of leverage. This can lead to quick gains or losses.

Japan's Central Bank and Market Reaction

Japan's central bank raised rates, causing the 10-year government bond yield to hit 2%—a level not seen since 2006. However, the market took it well:

• The yen weakened.
• Asian stocks rose, with technology shares leading the gain.
• U.S. stocks also did well, with the S&P 500 and Nasdaq 100 rising. This was helped by:
• Good news from Micron Technology, easing fears about AI spending.
• Softer U.S. inflation data, making investors think the Federal Reserve might cut rates soon.

Crypto Market Pressures Easing

There are signs of pressure easing in the crypto market:

• Long-term Bitcoin holders are nearly done selling, after selling about 20% of their supply over two years.
• Traders remain cautious, with the recent bounce more about relief than strong belief.
• The market is open to big moves, especially as the year ends, with thin liquidity and high leverage.