Bitcoin and Ethereum rose above key technical levels on Friday, following gains in Asian stocks after the Bank of Japan raised interest rates to their highest level in three decades and cooling US inflation data revived appetite for risk assets.
Bitcoin rose above $87,000 in Asian trading, while ether rose alongside broader market strength as investors overlooked the BOJ’s long-announced move and focused instead on easing global financial conditions.
ADA from Cardano, SOL from Solana, lodging and lodging and rose as much as 3%, and the broad CoinDesk 20 index rose 2%.
The bullish move came after a volatile, albeit relatively limited, session that saw more than $576 million in cryptocurrency liquidations occur in 24 hours, largely concentrated in long positions, according to CoinGlass.
These liquidation flows are indicative of how crowded positioning had become during the recent rally, and the use of high leverage remains dominant, albeit to capture small profits.
Japan’s 10-year government bond yield briefly touched 2% for the first time since 2006 after the central bank raised its benchmark rate, a move that had been widely expected following weeks of hawkish signals from Governor Kazuo Ueda.
Instead of 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 US stocks extended their rebound overnight. The S&P 500 rose 0.8% and the Nasdaq 100 jumped 1.5%, helped by a strong outlook from Micron Technology that eased fears about AI spending and strained valuations.
Risk sentiment was further supported by weaker US inflation data, which restored expectations that the Federal Reserve could begin cutting rates in the coming months.
Meanwhile, on-chain data suggests some pressure may be easing.
Long-term bitcoin holders are close to ending a prolonged selling phase, according to K33 Research, after roughly 20% of supply returned to the market over the past two years.
Still, traders remain cautious. The latest bounce has been driven more by macroeconomic relief than conviction, leaving cryptocurrencies vulnerable to sharp moves as markets approach the end of the year with tighter liquidity and high leverage.
