Daily Market Update: Bitcoin Crosses $87K Following BOJ Rate Hike and Soft Inflation Data

TLDR

• Bitcoin jumped above $87,000 on Friday as Asian stocks rallied following Japan’s central bank raising rates to the highest level in 30 years
• Japan’s 10-year bond yield hit 2% for the first time since 2006 after the Bank of Japan increased its benchmark rate as expected
• U.S. stocks surged with Nasdaq up 1.4% after CPI showed inflation rose just 2.7% in November versus 3% forecast
• Micron shares jumped 10% on earnings that beat forecasts by nearly double, calming fears about AI sector spending
• Crypto markets saw $576 million in liquidations over 24 hours before the rally as leveraged traders were forced out of positions

Global markets moved higher on Friday as bitcoin climbed past $87,000 and stocks gained ground. Two major catalysts drove the rally: Japan’s interest rate increase and weaker-than-expected U.S. inflation figures.

Bitcoin crossed the $87,000 threshold during Asian hours. Ether and other major cryptocurrencies also posted gains as risk appetite returned to markets.

The Bank of Japan increased its benchmark interest rate to the highest point in three decades. The move had been widely anticipated after Governor Kazuo Ueda delivered hawkish commentary in recent weeks. Japan’s 10-year government bond yield touched 2% briefly, marking the first time since 2006.

Market participants took the rate decision in stride. The yen declined while Asian equity indexes climbed. Technology stocks led the MSCI Asia Pacific Index 0.7% higher.

Major altcoins participated in the crypto market advance. Solana’s SOL, Cardano’s ADA, XRP, BNB, and Dogecoin rose up to 3%. The CoinDesk 20 index tracked the gains with a 2% increase.

The rally followed a turbulent period for crypto markets. Liquidations totaled more than $576 million in the prior 24 hours. Long positions accounted for most of the forced selling as high leverage caught traders off guard.

U.S. equity markets posted strong gains on Thursday. The tech-heavy Nasdaq Composite climbed 1.4% to lead the advance. The S&P 500 increased 0.8% while the Dow Jones Industrial Average rose 0.2%.

Micron Results Lift Technology Sector Sentiment

Micron Technology delivered quarterly results that exceeded Wall Street forecasts. The chipmaker released earnings Wednesday evening showing strength in its business. The company projected next quarter’s adjusted profit at roughly twice analyst estimates.

Shares of Micron surged 10% following the report. The strong results helped reverse negative sentiment around AI spending that had weighed on tech stocks. Major names like Nvidia and Broadcom had fallen Wednesday after Oracle lost support for a $10 billion data center project.

The Consumer Price Index for November showed prices rising 2.7% from a year earlier. Economists had predicted a 3% gain. Core CPI registered 2.6%, missing the consensus estimate of 3.1%.

Fed Rate Cut Bets Increase Following CPI Print

The lower-than-expected inflation reading shifted market views on Federal Reserve policy. Traders increased bets that the central bank could reduce interest rates in the months ahead. Fed governor Chris Waller had already expressed openness to rate cuts before the CPI release.

Weekly jobless claims came in at 224,000 for the period ending December 13. The figure dropped 13,000 from the prior week’s reading. Recent employment data has shown unusual swings due to the federal government shutdown.

Bitcoin holder patterns show signs of change according to blockchain data. K33 Research notes that long-term holders may be nearing the end of an extended selling cycle. Roughly 20% of total supply has moved back into circulation during the past two years.

U.S. stock futures built on overnight gains. Markets reacted favorably to both the orderly BOJ rate move and softer American inflation. Asian technology companies posted particularly strong performances.

Market participants remain cautious heading into year-end. Trading volumes typically decline during this seasonal period. Leverage remains elevated in cryptocurrency markets despite the recent wave of liquidations.

Trump Media & Technology Group struck a merger agreement with Tae Technologies worth $6 billion. The fusion energy firm counts Alphabet and Chevron among its backers. Trump Media stock price jumped on the deal announcement as markets priced in growing AI energy needs.

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