Attention is sharply focused on the Bank of Japan’s monetary policy meeting, set for June 16-17, as speculation intensifies surrounding the central bank’s forthcoming actions. Analysts suggest that the decisions made at this meeting could significantly impact global risk markets, influencing everything from Japanese stocks to cryptocurrencies, notably Bitcoin.
BOJ Meeting: Arthur Hayes Envisions Bitcoin Surge if QE is Reinstated
Arthur Hayes, co-founder of BitMEX and chief investment officer of Maelstrom, has expressed his belief that the Bank of Japan may revert to a policy of quantitative easing (QE) shortly. Such a move, he argues, would enhance liquidity in the economy and benefit risk assets.
On June 10, Hayes shared his views on X, stating, “If the BOJ delays QT, and restarts selected QE at its June meeting, risk assets are going to fly.”
I don’t think ordinary Japanese plebes would agree. If the BOJ delays QT, and restarts selected QE at its June meeting, risk assets are going to fly.
LFG $BTC pic.twitter.com/ET08M6tWeS
— Arthur Hayes (@CryptoHayes) June 10, 2025
Quantitative easing, commonly referred to as QE, involves the central bank purchasing government bonds to maintain low interest rates and stimulate economic growth.
A decision to move in this direction could provide a significant boost to both cryptocurrency and equity markets, as investors are closely monitoring Japan’s policy shifts amid economic uncertainties globally.
Reports from Bloomberg suggest that the Bank of Japan plans to reduce the pace of its quantitative tightening (QT). Since last summer, the BOJ has been decreasing its government bond purchases by ¥400 billion ($2.8 billion) each quarter, but this pace may soon be cut by half.
Eiji Maeda, a former BOJ executive director now leading the Chibagin Research Institute, noted, “The pace of reduction is likely to be eased to around ¥200 billion per quarter. They won’t keep going with ¥400 billion.”
Additionally, Governor Kazuo Ueda’s board is anticipated to reassess the current bond-buying framework through 2026 and further. Maeda indicated that a further decline in monthly bond purchases may stall once they reach approximately ¥2 trillion by the start of 2027.
Despite widespread expectations that the BOJ will maintain its benchmark interest rate at 0.5% during the upcoming meeting, attention is increasingly centered on how swiftly and extensively it will modify its bond purchase strategy.
In the context of rising inflation—above the 2% target for three consecutive years, marking Japan as the highest among G7 nations—there are growing anticipations that the BOJ may consider additional easing measures. Nonetheless, the ongoing uncertainties surrounding U.S. tariffs and a recent contraction in GDP present challenges to any timeline for potential rate hikes.
“The BOJ must be careful,” Maeda cautioned. “They shouldn’t rush for normalization when these thick, dark clouds are hanging over the economy.”
Potential Bitcoin Bull Cycle Amid BOJ Policy Adjustments
As the market gears up for the BOJ’s June 16 meeting, stakeholders are increasingly fixating on how any policy adjustments could influence global financial assets, including cryptocurrencies.
The central bank’s announcement last July to scale back government bond purchases by ¥400 billion each quarter marked a pivotal move toward QT.
Now, with an interim assessment on the horizon, insiders suggest that a more gentle approach might be taken, potentially reducing bond purchases by only ¥200 billion quarterly starting in April 2027. This shift could imply a longer-term dovish sentiment, which might encourage capital inflows into risk assets, including Bitcoin.
Historically, Bitcoin has reacted to the BOJ’s tightening actions. For instance, just days after Japan’s 30-year bond yield hit a record 3.185% on May 22, BTC soared to a new all-time high of $112,000.
Currently trading at $109,152, Bitcoin remains in a bullish trend with robust technical support above $75,000.
Price trends are consolidating within a descending triangle, a pattern often associated with significant price movements. With trading volume stable and the relative strength index remaining neutral, traders are watching for a potential breakout prior to July 1.
Bitcoin’s recent volatility has left traders torn between optimism and caution, as shifting global capital flows collide with conflicting technical signals.#Bitcoin #BTChttps://t.co/ZcWeyewRad
— Finance Newso.com (@Finance Newso) June 10, 2025
If Bitcoin successfully breaks through the $110,000 resistance level, analysts predict it could target new highs between $115,000 and $118,000, potentially catalyzing the next phase of its bullish cycle.
The post BOJ June Meeting Could Trigger Major Moves in Stocks and Crypto – What to Watch appeared first on Finance Newso.
