Bank of Japan Begins Selling $250 Billion in ETFs
The Bank of Japan (BOJ) announced it will start selling its large holdings of exchange-traded funds (ETFs). This decision ended decades of monetary easing. BOJ Governor Kazuo Ueda said the sales will be slow and could take over a century to complete.
The move caused a sell-off in global financial markets on Friday. Japan’s Nikkei index dropped more than 1% amid growing investor caution.
Impact on Cryptocurrency Markets
The BOJ’s policy shift also affected cryptocurrencies. Bitcoin’s price fell slightly after nearing the $118,000 resistance level. It dropped to just above $116,000 and currently trades around $116,277, a 0.03% decrease over 24 hours.
Other major cryptocurrencies also declined:
- Ethereum (ETH) fell 0.31% to $4,534.95
- XRP dropped 0.38% to $3.02
- Solana (SOL) decreased 0.23% to $241.84
Market Correlation Highlights Crypto Sensitivity
This event shows how traditional and digital markets can be linked. Cryptocurrencies reacted quickly to the BOJ’s monetary policy change. It highlights that crypto is sensitive to shifts in global liquidity and investor sentiment.
Investors should note that changes in interest rates and quantitative easing can influence crypto prices. Despite being a high-risk asset class, cryptocurrencies are affected by broader economic policies.
