Bitcoin and Ethereum surged past crucial technical benchmarks on Friday, following increases in Asian stocks after the Bank of Japan elevated interest rates to their highest level in thirty years. Additionally, easing inflation data from the U.S. rekindled interest in risk assets.
During Asian trading, Bitcoin surpassed $87,000, while Ethereum also gained alongside overall market momentum, as investors shifted focus from the BOJ’s anticipated decision to improving global financial conditions.
Cardano’s ADA, Solana’s SOL, , BNB and experienced increases of up to 3%, with the overall CoinDesk 20 index also rising by 2%.
This upward shift followed a tumultuous, yet relatively stable session, which saw over $576 million in crypto liquidations within a 24-hour period, predominantly in long positions, as reported by CoinGlass.
The liquidation trends highlight the crowded positioning during the recent market recovery, as high leverage continues to dominate, albeit with a focus on securing modest gains.
Japan’s 10-year government bond yield briefly surpassed 2% for the first time since 2006 as the central bank elevated its benchmark rate. This decision was widely anticipated following weeks of hawkish signals from Governor Kazuo Ueda.
Rather than alarming markets, the action was smoothly integrated, leading to a weakening yen and a rise in Asian stock markets.
The MSCI Asia Pacific Index rose by 0.7%, driven by technology stocks, while U.S. stock futures extended their overnight recovery, with the S&P 500 climbing 0.8% and the Nasdaq 100 increasing by 1.5%, buoyed by a positive forecast from Micron Technology, which alleviated concerns about AI spending and lofty valuations.
Risk appetite was further bolstered by softer U.S. inflation data, which reset anticipations that the Federal Reserve might start reducing rates in the months ahead.
On-chain analytics indicate that certain pressures could be easing.
According to K33 Research, long-term Bitcoin holders are nearing the end of an extended selling phase after approximately 20% of the supply returned to the market over the last two years.
However, traders continue to exercise caution. The latest rally appears more influenced by macroeconomic relief rather than firm conviction, leaving the cryptocurrency market vulnerable to abrupt fluctuations as it approaches year-end with limited liquidity and heightened leverage.
