Bitcoin Rises After Japan Rate Hike, XLM, INJ, and UNI Post Strong Gains

Bitcoin recovered above $66,500 after Japan’s rate hike, while XLM, INJ, and UNI also jumped sharply. The derivatives market is meanwhile pointing to more risk appetite.

Key Takeaways

• Bitcoin rose above $66,500 after the Bank of Japan raised rates to their highest level in 31 years.
• XLM, INJ, and UNI gained between 13% and 16%; SIREN fell 21% in 24 hours after heavy selling by a large holder.
• Derivatives volume jumped 51% to $207 billion and open interest increased, while volatility kept easing.

Bitcoin climbed above $66,500 (€57,300) after the Bank of Japan raised rates to their highest level in 31 years. That rate hike sparked a rebound in the crypto market, with Bitcoin up 1.5% over 24 hours and extending its recovery after dipping below $60,000 (€51,700) in early June.

Strong Altcoin Performance

Alongside Bitcoin, several altcoins posted impressive gains. Stellar’s XLM, Injective’s INJ, and Uniswap’s UNI rose between 13% and 16%, making them some of the best performers in the top 100 cryptocurrencies. UNI’s price gain follows recent coverage by Standard Chartered, which projected a long-term target of $100 (€86) for the token by 2030, partly because of expected growth in tokenized assets within decentralized finance.

At the same time, memecoin SIREN stayed in a downward spiral, losing 21% in 24 hours, which adds up to a 77% drop this month. Blockchain data analysis shows that a large holder sold nearly 92% of the tokens, which helps explain the sharp price drop.

Derivatives and Market Sentiment

The derivatives market is showing renewed risk appetite. Trading volume rose 51% to $207 billion (€178 billion), while open interest increased 2.4% to $113.41 billion (€97.7 billion). Liquidations jumped 64%, especially among short positions. Open interest in Bitcoin futures hit 747,000 BTC, the highest level since early June, pointing to a growing willingness among investors to take on risk. Open interest in Ether futures also edged higher, which is a positive sign.

Even with the higher activity, volatility keeps falling. The 30-day implied volatility indexes for Bitcoin and Ether have almost fully recovered from the early-June peak, suggesting investors are getting less nervous. On Deribit, Bitcoin puts between $58,000 (€50,000) and $64,000 (€55,100) were especially active, with heavy use of put condors, a strategy that benefits from a specific volatility range.

Why This Matters for European Crypto Investors

The Bank of Japan’s rate hike and the market moves that followed could also matter for European investors. Bitcoin’s rise and the gains in selected altcoins show that global macro developments still have an impact on digital assets. On top of that, the rebound in the derivatives market gives a clearer picture of shifting sentiment and risk appetite, which can help with gauging future market moves in Europe. That ties into the broader discussion around inflows into altcoin ETFs, where investors are increasingly spreading their crypto exposure beyond Bitcoin alone.