The Bank of Japan's recent comments have sparked concerns among cryptocurrency investors as they hint at a potential rate hike in June. The regulator's increased focus on rising oil prices and accelerating inflation has led to a strengthening yen, which is causing investors to become more cautious about risky positions.
According to Barclays and swap market participants, the probability of another rate hike by the Bank of Japan in June is around 74%. This development has put pressure on the cryptocurrency market as history suggests that rate hikes in Japan have negatively impacted crypto prices.