On Friday, Bitcoin hovered around $63,900, remaining mostly unchanged, as the Bank of Japan opted to keep its benchmark interest rate at 1%. Governor Kazuo Ueda's attempts to project a hawkish stance did not resonate strongly with the markets.
During Ueda's press briefing, the yen relinquished its earlier gains, and the dollar-yen exchange rate reverted to its initial position, as traders had already factored in a significant likelihood of an interest rate increase in October.
Ueda indicated that inflation is expected to exceed 2% later this fiscal year, attributing this to rising demand for AI and the depreciated yen, both of which have influenced the macroeconomic environment for cryptocurrencies throughout the month.
The weakness of the yen has bolstered carry trades, which channel funds into riskier assets, while the AI investment cycle has been closely aligned with Bitcoin's performance.
The overall market remained subdued. Ether was stable around $1,885, while BNB stood out among major tokens, rising 3.5% for the day and 4.4% over the week, reaching approximately $591, according to CoinDesk data.