#bank-of-japan

#bank-of-japan

XRP ( ), more sensitive to these flows than Bitcoin or Ethereum, fell sharply as leveraged positions unwound. With economists projecting rates could hit 1.0% by September 2026, the macro pressure looks set to persist. Each incremental hike tightens the funding conditions that made crypto speculation cheap. But Japan simultaneously approved crypto tax reform that could override the entire carry trade narrative-slashing rates from 55% to a flat 20% and opening institutional floodgates.

Crucially, crypto has provided one area of particular concern, with the continued flush lower bringing financial stress for many that will also have positions across a raft of traditional assets. The main piece of news for markets has come from overnight comments out of the BoJ, with Governor Ueda noting that the group will weigh up the pros and cons of a rate hike in December.

Market players are anticipating almost a 60% chance of a Federal Reserve rate cut in September, which diminishes the US dollar's attractiveness against the Yen.