Bank of Japan has raised its benchmark interest rate by 25 basis points, bringing it to 0.75%—the highest level the BoJ has maintained in three decades. This marks a significant shift in Japan's monetary stance after years of accommodative policy. The rate hike reflects growing inflationary pressures and signals that even the most dovish central banks are beginning to tighten financial conditions. For crypto markets, such moves carry outsized importance: tightening global monetary policy typically reduces liquidity flowing into risk assets, including digital currencies. At the same time, higher rates in developed economies can create divergence in capital flows, potentially redirecting funds across different asset classes. Traders are watching closely to see whether this Japanese move catalyzes broader rate expectations across other central banks, which could reshape sentiment in the months ahead.