Dec 19, 2025
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Crypto Market Digests Falling Inflation, Rising BOJ Rates
Recent economic developments in the US and Japan are influencing global markets:
- The US Consumer Price Index (CPI) reported a year-over-year inflation rate of 2.7% for November, below the expected 3.1%.
- Japan's CPI slightly decreased from 3% to 2.9% for the same period.
- The Bank of Japan raised its interest rates by 25 basis points to 0.75%, marking the highest level in 30 years. This decision could strengthen the yen and attract capital to Japan.
- Higher interest rates may lead to funds moving from cryptocurrencies to safer bonds and currencies, tightening global liquidity.
Despite these mixed signals, risky assets like cryptocurrencies and stocks have seen positive responses:
- The S&P 500 rose by 0.79%.
- The global cryptocurrency market cap increased by 0.7% to $2.93 trillion.
- Bitcoin increased by 1.2% to nearly $88,000.
- Ethereum gained 4%, reaching $2,950.
Investors are advised to monitor upcoming macroeconomic signals, including US Fed actions, yen movements, and global liquidity levels.