The Bank of Japan has recently faced a dilemma – the pressure on the yen to depreciate is too great.

The Central Bank governors are all worried, with some committee members concerned that the yen may continue to weaken, potentially bringing inflation risks. Just now, a reporter directly asked: Is the Central Bank reacting too slowly?

JPMorgan has made a clear prediction: the Bank of Japan will raise interest rates twice next year, in April and October. By the end of 2026, the target rate might be raised to 1.25%.

In simple terms, the Bank of Japan needs to rely on interest rate hikes to stabilize the yen exchange rate while curbing rising prices. This round of policy adjustments will be faster and last longer than the market previously expected. This will have a ripple effect on global capital flows, including the cryptocurrency market which will be inevitably affected. $BTC $ETH