Japan Just Raised Interest Rates to a 30-Year High — Here's Why Crypto Barely Flinched

WHY IT MATTERS

Think of interest rates like the price of borrowing money. When a country raises rates, it becomes more expensive to borrow, which usually makes people less willing to invest in risky assets like crypto. Japan is special because it kept rates near zero for decades, which allowed traders to borrow cheaply in Japanese yen and invest that money elsewhere — a strategy called the 'carry trade.' When Japan raises rates, those traders sometimes have to sell their investments quickly to pay back their loans, which can cause market crashes. The fact that crypto didn't drop this time suggests the market is becoming more mature and resilient to these kinds of global financial shifts.