The Bank of Japan (BOJ) has finally pulled the trigger and, as usual, the Bitcoin angle is popping up in market conversations. The central bank raised its benchmark interest rate to 0.75%, a level Japan has not seen since 1995. That sounds dramatic, but the scale of the hike is probably what matters more than the FUD headlines some media outlets are making.
The Bank of Japan is widely expected to raise its benchmark rate on Friday to 0.75%, the highest level since 1995. It would be the first rate hike since January. All BoJ observers interviewed by Bloomberg predict a rate hike for the first time since the mandate of Governor Kazuo Ueda… pic.twitter.com/dt0QiquVMB
-Hedgie (@HedgieMarkets) December 18, 2025
The Bank of Japan is widely expected to raise its benchmark rate on Friday to 0.75%, the highest level since 1995. It would be the first rate hike since January. All BoJ observers interviewed by Bloomberg predict a rate hike for the first time since the mandate of Governor Kazuo Ueda… The increase was 25 basis points as we prepared for something much heavier. There were some projections circulating that assumed a 75 basis point move from the BOJ, which would have tightened liquidity quickly and put real pressure on cryptocurrency and Bitcoin sentiment. In this scenario, a drop in Bitcoin towards $63,000 did not seem unrealistic.
The BoJ increased by ..25 basis points
I mean, the market was expecting 50 basis points, some were talking about 75 basis points.
The yen is therefore weakening.
Let chaos ensue pic.twitter.com/pOTKxjBgEh
– Peter R Hann Goldbug Weirdo/Silver Affectionado (@PeterRHann1) December 19, 2025
Instead, nothing is broken. Bitcoin remained calm, steady at $87,000 after the announcement, without any significant movement. We are not seeing any panic or massive sell-off, the market has simply evolved. In this sense, Bitcoin’s reaction says more about positioning and accumulation than about BOJ policy.
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Background from the BOJ and what Bitcoin is showing now
Zooming out, the BOJ to Bitcoin link is something else we should be watching closely. American regulations. Michael Selig has now been confirmed as head of the CFTC, and he is widely seen as someone who understands Bitcoin. This alone changes the mood around derivatives and institutional access.
JUST IN:
– Watcher.Guru (@WatcherGuru) December 19, 2025
Senate confirms pro-crypto Michael Selig as CFTC chairman.In terms of price, Bitcoin has not really changed its behavior. It is still moving in a wide range of $84,000 to $94,000. Holders and believers continue to defend the lower end, and this area aligns with several key moving averages. On the upside, the $88,000 to $90,000 zone remains the level to beat.
In addition to US regulatory news and BOJ decisions, Bitcoin flows are also still structured. There is the outline of a reverse head and shoulders pattern forming, although this is not yet confirmed.
(source – BTC USD, Trading View)
On-chain data also supports the bullish scenario, with larger holders accumulating and exchange balances remaining low. For now, we are still optimistic.
Ethereum Moves While Bitcoin Holds Ground
While BOJ headlines dominated macro discussions, Ethereum quietly took the focus away from Bitcoin. ETH rose about 3.3% on the day and reached nearly $3,000, even though the market was mostly moving sideways.
Ethereum exchange balances are now at their lowest level since 2016. Only about 13.7% of the total supply is on exchanges, meaning there is simply less ETH available to sell. At the same time, institutions and companies are accumulating aggressively, adding millions of ETH to their long-term holdings.
In previous cycles, this same pattern did not last long without a rise. Ethereum’s tightening supply hints at a possible run towards the $4,100 zone. The demand for staking and reducing emissions only strengthens this case.
Overall, the market reaction to BOJ Bitcoin developments appears mature. Bitcoin is stable, while Ethereum is poised to lead the altcoin season.
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The article Crypto Market News Today, December 19: BOJ Raises Rates, Bitcoin Stable as Ethereum Rebounds appeared first on 99Bitcoins.
