Japan's Move Sparks Bitcoin Surge to $63,500 While Whales Offload $64 Million at Peak Levels

On Friday, September 20th, Bitcoin experienced a sharp rally, briefly reaching $63,500. This surge coincided with the Bank of Japan's decision to hold interest rates steady, which curbed expectations for the yen carry trade, triggering increased buying in the cryptocurrency market. Despite the bullish momentum, a whale offloaded 1,030 Bitcoins at the highs, amounting to approximately $64.27 million.

The U.S. Labor Department reported a surprising drop in jobless claims, falling from 231,000 in early September to 219,000 by mid-month. This decline aligns with the Federal Reserve’s expectations of stabilizing economic conditions, further increasing demand for assets with higher risk. With the labor market continuing to strengthen, wage growth and consumer spending are likely to rise, which could provide more support for the broader economy. Given that consumer expenditure drives over 60% of the U.S. economy, this dynamic offers a positive backdrop for market growth.

The Bank of Japan wrapped up its two-day monetary policy review by maintaining its short-term interest rate range of 0.15%-0.25%. The central bank’s July decision to raise rates by 15 basis points surprised many, and they plan to reduce government bond purchases by 2026. In its policy statement, the BoJ noted that while Japan’s economy is steadily recovering, inflation expectations have risen slightly.

Arthur Hayes, BitMEX founder and seasoned trader, delivered a stark warning at the TOKEN 2049 conference in Beijing. He cautioned that the U.S. Federal Reserve’s eventual rate-cut cycle could bring the yen carry trade back to life, potentially triggering a market collapse. The recent whale sell-off of 1,030 Bitcoins also caught attention, as it occurred during Bitcoin’s rise to $63,000, underscoring the strategic maneuvers some investors are making amid market volatility.

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