The Bank of Japan announced on December 19th a decision to raise interest rates by 25 basis points, bringing the short-term rate up to 0.75%. This move aligns with market expectations and was unanimously approved by the Policy Board.

From a policy perspective, the central bank believes that even with the rate hike, real interest rates will remain at very low levels. What does this mean? Simply put, although nominal interest rates are rising, considering inflation factors, the actual purchasing power cost remains very low. The central bank explicitly stated that as long as economic and price performances meet expectations, it will continue to raise the policy interest rate.

More importantly, the Bank of Japan emphasized: **After the rate adjustment, the monetary environment remains accommodative**. What this means for risk assets is obvious—an abundant liquidity environment generally supports crypto assets.

On the economic front, the central bank maintained its assessment of the Japanese economy. Despite some signs of weakness, the overall judgment is a moderate recovery. Core inflation is also expected to continue rising modestly, in line with global inflation trends.

From a technical perspective, the market experienced a rally around 875 driven by this information. How the subsequent trend will develop depends on the ongoing implementation pace of the central bank’s policies and the market’s reaction to the easing expectations. For crypto market participants, such macro policy signals are worth close attention.