The Bank of Japan just announced a 25 basis point interest rate hike, bringing its policy rate to 0.75%. This marks another step in the BOJ's gradual tightening cycle—a shift from years of ultra-loose monetary policy.

Why does this matter for crypto? Higher rates in Japan ripple across global markets. When the BOJ tightens, it typically strengthens the yen and can reduce carry-trade liquidity that's been funding risk assets—including digital assets. Traders who've been borrowing cheap yen to invest elsewhere suddenly face higher costs.

The 25bps move signals the BOJ is confident enough in economic conditions to keep hiking. This contrasts with some central banks pausing rate hikes. The question now: how far will the BOJ go? If we see more aggressive tightening, it could reshape capital flows into crypto markets, especially for assets favored by Japanese institutional investors.

For those watching macro trends, this is a reminder that traditional monetary policy and crypto markets aren't disconnected. Central bank moves hit sentiment, leverage, and cross-border flows in ways that eventually show up on-chain.