Crypto Waves: Bitcoin, Ethereum, and Others Ride the Asian Market Surge

Cryptocurrencies like Bitcoin and Ethereum saw a boost recently. This happened as Asian markets reacted to Japan's interest rate hike. The Bank of Japan raised rates to the highest level in 30 years. This move was expected. It did not scare investors. Instead, it led to gains in Asian stocks and cryptocurrencies. Bitcoin's value climbed above $87, 000 in Asia. Ethereum also saw gains. Other cryptocurrencies like Cardano's ADA, Solana's SOL, and XRP rose by up to 3%. This broad rise pushed the CoinDesk 20 index up by 2%. The market had been volatile. Over $576 million in crypto positions were liquidated in 24 hours. Most of these were long positions. This shows that many traders were betting big on a price increase. But they were also using a lot of leverage. This can lead to quick gains or losses.Japan's central bank raised rates. This caused the 10-year government bond yield to hit 2%. This had not happened since 2006. But the market took it well. The yen weakened. Asian stocks rose. Technology shares led the gain. U. S. stocks also did well. The S&P 500 and Nasdaq 100 rose. This was helped by good news from Micron Technology. It eased fears about AI spending. Softer U. S. inflation data also helped. It made investors think the Federal Reserve might cut rates soon. There are signs of pressure easing in the crypto market. Long-term Bitcoin holders are nearly done selling. This is after selling about 20% of their supply over two years. But traders are still cautious. The recent bounce was more about relief than strong belief. This leaves crypto open to big moves. This is especially true as the year ends. Liquidity is thin. Leverage is high.