The Bank of Japan (BOJ) has opted to maintain its current interest rates amidst global financial instability. According to Deputy Governor Shinichi Uchida, the move is intended to manage the recent volatility in international markets, which has considerably influenced the cryptocurrency market.
Geopolitical Intrigue and the U.S. Election Connection
Further throwing gasoline onto the geopolitical fire, Arthur Hayes the co-founder of BitMEX tied Uchida’s choice to the U.S. elections. In a post on social media platform X Hayes posted a message stating that the United States Treasury Secretary Janet Louise Yellen encouraged Uchida not to increase the rate. This was because they wanted to reduce pressure on global markets especially with the U.S. approaching its 2024 presidential elections.
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Hayes assumed that the call with Yellen was made to help the Democratic candidate and the current Vice President Kamala Harris. As for Polymarkets, it expects Harris to have a 46% chance of winning the election, while Trump, despite the significant support of the digital asset community, has been lowered to 52%.
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Hayes Predictions and Market Reactions
Hayes also boldly proposed that Yellen might pump between $300 billion to $1.05 trillion into the market to give the economy confidence before the year ends. He also revealed that he intends to release an essay known as “Spirited Away” after the U. S. Treasury Quarterly Refunding Announcement. After BOJ gave initial indications regarding a possible change of interest rate, Bitcoin (BTC) went through a massive drop. However, BTC has since rebounded, with a 3.7% surge on Tuesday and a 3% increase in the past 24 hours. At the time of writing, BTC is trading at $57,213, with a 48.74% decrease in trading volume. The market cap of BTC stands at $1.13 trillion.
The recent decision by the BOJ to leave interest rates untouched due to turmoil in global markets highlights the interdependence of economic and political contexts. Such decision-making will further have bearings on the international markets as well as on the election campaigns of the U. S elections, given that the election is developing pace.
Also Read: Sony Acquires Amber Japan, Marking Entry into the Crypto Industry
Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. He writes extensively on topics such as blockchain, cryptocurrency, tokens, and more for top publications such as Coingape, Coin Edition, and The Coin Republic. His goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.