Bank of Japan Lifts Rate to 0.75% Three-Decade High as Bitcoin Recovers Toward $88,000

On December 19, the Bank of Japan raised its policy rate to 0.75%, the highest level in around 30 years, while indicating real rates would remain deeply negative. Bitcoin briefly slipped below $86,000 after the announcement but rebounded to trade above $87,000–$88,000 as analysts debated how Japan’s tightening, diverging from anticipated Fed cuts in early 2026, could shape near-term crypto volatility and price targets up to $200,000.