Bank of Japan's Divided Vote Spurs Bitcoin Price Decline

The Bank of Japan's (BOJ) decision on Tuesday sparked a decline in Bitcoin prices as the central bank held its short-term policy rate at 0.75% but with a hawkish split among board members.

The BOJ's 6-3 vote marked the widest internal divide under Governor Kazuo Ueda since he took office, with three board members pushing for an immediate hike to 1.0% citing persistent inflation pressure and a vulnerable yen.

As a result, money markets now price roughly 70% odds of a 25 basis point hike at the June meeting, which has led to renewed fears of a yen carry trade unwind that has battered crypto markets in past tightening episodes.