Bank of Japan officially ends negative interest rates, can Bitcoin against the Japanese Yen still reach new highs?

The Bank of Japan (BOJ) announced the formal end of its negative interest rate policy, raising interest rates for the first time in 17 years from -0.1% to a range of 0% to 0.1%, and also abolishing the yield curve control policy. Following the policy announcement, Japanese stocks rose, the yen depreciated, can Bitcoin still reach new highs against the Japanese yen?

Japanese Stocks Rise, Yen Continues to Depreciate

The Nikkei 225 index closed today above 40,000 points, up 0.66%. After experiencing decades of stagnation, the Japanese stock market finally broke through the high point of 1989 in February, reaching a high of 40,472 on 3/6.

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However, despite Japan ending the negative interest rate policy implemented since February 2016, there is still a gap of over 5% in interest rates compared to the US dollar. The USDJPY pair briefly dropped after the announcement but then continued to rise, reaching 150.36 before the deadline. The yen's trend remains weak.

Can Bitcoin against the Yen Reach New Highs?

Due to the prolonged negative interest rates of the yen, it has been used by investors as a tool for carry trade due to interest rate differentials. Bitcoin against the yen reached a historic high back in February when Bitcoin against the US dollar was still at 52K. Now that Japan has finally ended the era of negative interest rates, with the Japanese stock market continuously rising, along with the simultaneous increase in Japanese corporate wages and domestic prices, will the yen be able to break free from its depreciation trend and gradually return to normalcy?

Note: Carry trade refers to borrowing money in a low-interest rate country, such as Japan, and converting it into the currency of a higher-interest rate country, such as the United States, to earn interest differentials.

Bitcoin against the yen reaches a historic high as Japan's GDP is overtaken by Germany, losing its position as the third-largest economy