$BTC The increase in the Bank of Japan's rate intensified risk-on sentiment.

Reasons (briefly):

➠ The Bank of Japan raised the interest rate to a 30-year high (0.75%).

➠ The main point – the yen did NOT strengthen. There were fears of a carry unwind (mass liquidation of yen-denominated loans → sell-off of risk assets). However, the yen weakened after the rate decision, and there was no financial stress.

➠ The rate hike was already priced in. When an expected event occurs without a shock – investors unwind hedges and return risk assets to their portfolios.

➠ "Dovish tightening": The Bank of Japan emphasized that the real rate is still low, and increases will be gradual. Global liquidity is not being "tightened" sharply.

➠ The U.S. added fuel: Inflation in the U.S. is below expectations (CPI) → the chances of a Fed rate cut increased → the dollar weakens, and risk appetite rises.

➠ Conclusion: The market feared not the rate itself, but the chaos with the yen and funding. This did not happen → risk-on.