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Bitcoin Falls as Bank of Japan’s 6-3 Hawkish Hold Revives Carry Trade Fears

Bitcoin fell below $76,200 after the Bank of Japan held its short-term policy rate at 0.75% in a split 6-3 vote that saw three members push for an immediate hike to 1.0%. The hawkish dissension and a sharper inflation outlook (core inflation for fiscal 2026 raised to 2.8% from 1.9%) lifted market odds of a June rate increase to roughly 70%, reviving fears of a yen carry-trade unwind. Traders sold risk assets including BTC as USD/JPY eased from ~159 — a key threshold for carry unwinds — and investors now watch BOJ guidance, Ueda’s press conference, and upcoming US macro/Fed cues for the next leg in positioning.

Category

Bitcoin

Sentiment

Bearish

Event

Policy impact

Reading time

1 min