Bitcoin Shrugs Off BoJ Rate Hike to 0.75%; Ethereum Bleeds Against BTC

Macro Shock Absorbed

The Bank of Japan (BoJ) just executed its most aggressive tightening maneuver since 1995, raising interest rates to 0.75%. Markets braced for a liquidity crunch similar to the carry-trade unwind earlier this year. Instead, Bitcoin (BTC) barely flinched.

While the total crypto market cap momentarily dipped to an 8-month low of $2.93 trillion, BTC refused to break structure. The leading asset is currently trading at $88,187 (+1.67%), effectively decoupling from the macro panic that sent Asian equities tumbling. This resilience signals a shift in market structure: leverage is no longer as cheap, but demand for sovereign-grade collateral is outweighing the cost of capital.

The Divergence: ETH/BTC Bleeds

The resilience is not uniform. Ethereum (ETH) failed to mirror Bitcoin’s strength, languishing at $2,920 and dragging the broader altcoin market down. The ETH/BTC ratio has collapsed further as institutional flows concentrate almost exclusively on Bitcoin as a hedge against fiat debasement.

"Bitcoin’s True Market Mean near $81.3k is the level separating time-driven drawdowns from aggressive loss realization. In the post-October regime, that level has taken on added weight." — Glassnode Analysis

Derivatives & Institutional Flows

Two critical data points explain the price action:

• Options Expiry: A massive $3.16 billion notional expiry (BTC and ETH combined) on Deribit today created a magnet effect around $88,000 (Max Pain), dampening volatility.
• ETF Flows: Despite the rate hike fears, BlackRock’s IBIT recorded a net inflow of $32.7 million yesterday, countering outflows from other issuers. Smart money is buying the dip, ignoring the noise from Tokyo.

Market Outlook

The market has absorbed the BoJ’s punch. The immediate risk now shifts to the $2.9T support level for the total market cap. If Bitcoin holds $86,400 through the weekend, the "monetary tightening" narrative may be dead in the water for crypto assets.