Crypto markets stayed calm on Friday, even after the Bank of Japan’s (BoJ) 25-basis-point rate hike. The move had been widely expected, and traders seemed unfazed as Bitcoin (BTC) held firm above $87,000.
The broader crypto market showed stability as investors digested the policy shift and looked ahead to 2025 with renewed optimism.
Bitcoin Steady Despite Macro Headwinds
At the time of writing, Bitcoin was trading at $87,794, up nearly 1% in 24 hours. Prices moved between $85,107 and $89,412, proving how well BTC is holding up amid global market jitters.
Market cap: $1.75 trillion.
Support levels: $84,000–$85,000.
Even as Bitcoin remains below the $2 trillion total valuation mark, it continues to dominate the crypto space. That steady range tells investors one thing — confidence hasn’t left the market.
Ethereum Takes the Lead with Stronger Gains
While Bitcoin moved sideways, Ethereum (ETH) stole the spotlight.
ETH climbed 3.57% in a day, trading near $2,938 after ranging between $2,777 and $2,994, according to CoinMarketCap. The 24-hour turnover hit $36 billion, showing traders are rotating into altcoins with higher upside.
Market watchers say the upbeat sentiment follows cooler-than-expected US inflation data, which temporarily boosted appetite for risk assets.
Analysts See Relief Rally Ahead
According to Akshat Siddhant, Lead Quant Analyst at Mudrex, the market has already priced in the BoJ’s 25bps rate move. With the final major macro event of the year now behind us, he sees the potential for a short-term rally.
“Bitcoin’s price action reflects a market that’s digested the BoJ hike,” Siddhant said. “Now, with US CPI data coming in softer, we might see a relief rally across crypto.”
He also noted that Bitcoin ETFs recorded $457 million in net inflows, a bullish sign that could help BTC break above $90,000 if momentum holds.
Resistance Still Strong Near $89K
The optimism is real, but resistance zones remain a challenge.
According to the CoinSwitch Markets Desk, Bitcoin’s rally stalled near $89,000, where short-term leverage and liquidations triggered selling.
“Bitcoin spiked on CPI data but couldn’t hold those levels,” analysts said. “Volatility rose as traders unwound crowded positions.”
Key levels to watch:
- Support: $84,000–$85,000
- Resistance: $88,500–$89,000
CoinSwitch advises traders to avoid chasing breakouts and keep leverage low until the market stabilizes.
Altcoins Show Mixed Momentum
The altcoin market painted a mixed picture on Friday, with some coins surging while others lost steam.
Top performers included:
- Bitcoin Cash (BCH)
- Ethereum (ETH)
- Avalanche (AVAX)
- XRP (XRP)
- Binance Coin (BNB)
- Worldcoin (WLD)
Meanwhile, Shiba Inu (SHIB), Polygon (POL), Toncoin (TON), and Render (RENDER) pulled back, dropping up to 8%.
The contrast reflects a market in rotation — traders are consolidating into large-cap names while taking profits on speculative tokens.
What’s Driving Market Sentiment Right Now?
Two big macro trends are shaping crypto’s current mood:
- Central Bank Shifts: The BoJ’s rate hike signals a new phase in global monetary policy. That means reduced liquidity but also a cleaner setup for long-term positioning.
- Cooling US Inflation: Softer CPI data has renewed hopes for future Fed rate cuts, fueling cautious optimism across risk assets.
Both factors are fueling a market that’s steady, cautious, and quietly bullish heading into 2025.
What to Watch Heading Into Year-End
The final trading weeks of the year could be telling. Keep an eye on:
- Bitcoin’s push toward $90,000.
- ETF inflows, which hint at institutional sentiment.
- Macro headlines from the US and Japan in early 2025.
- Altcoin rotation trends that often signal broader risk appetite.
Short-term volatility is expected, but the broader structure remains constructive — and that’s what long-term traders care about.
Conclusion
The crypto market’s ability to absorb macro shocks says a lot. Bitcoin holding above $87K despite global rate changes and profit-taking shows resilience.
Ethereum’s rally adds bullish energy, while ETF inflows signal strong institutional support.
For now, the smart move is clear:
- Stay patient.
- Manage risk carefully.
- Watch key support zones and avoid overleveraged plays.
With macro uncertainty fading and sentiment stabilizing, crypto seems poised for a potentially strong start to 2025.
FAQ’s
1. Why didn’t Bitcoin fall after the BoJ rate hike?
Because markets had already priced it in. The yen carry trade unwind had started earlier, so the rate move wasn’t a surprise.
2. Can Bitcoin break $90,000 soon?
If ETF inflows continue and volatility eases, yes. But resistance near $89K needs to be cleared first.
3. How does US inflation impact crypto?
Lower inflation supports risk assets by improving the case for rate cuts — a tailwind for Bitcoin and altcoins.
4. What’s the smart strategy in this market?
Stay conservative with leverage, trade within clear support and resistance zones, and avoid emotional decisions.
5. Which altcoins look promising right now?
Ethereum, Avalanche, XRP, and BNB are showing relative strength versus smaller, more volatile coins.