Chart of the week

The Bank of Japan's decision to double interest rates from 0.25% to 0.5% impacted the crypto market, though less significantly than the reaction in late July 2024. This rate hike, bringing interest levels to a 17-year high, appeared to be largely anticipated by the market, tempering the response of risk assets. 

As mentioned in previous updates, corrections in Bitcoin are expected even during bull runs. However, it is encouraging to see signs of market maturity, leverage mitigation and reduced liquidity-driven reactions in such scenarios.

Market Highlights

Trump’s crypto executive order

Trump signed an EO titled "Strengthening American leadership in digital financial technology", following SEC’s new crypto task force.

This suggests a shift to a pro-crypto administration and a pivot in digital asset policy. It also showcases new US efforts to foster innovation and clarify its regulatory landscape.