Bank of Japan Rate Path Could Make or Break XRP in 2026—Here’s Why and When It Stops

XRP benefited more than most from that constant flow. Its smaller market depth and higher speculative positioning made it especially responsive to marginal liquidity shifts. But that dynamic is reversing. Japan's policy rate jumped to 0.75% in December 2025 and economists widely expect at least 1.0% by mid-2026.For years, the yen-funded carry trade quietly pumped liquidity into risk assets without most investors noticing the mechanism. Traders borrowed yen at near-zero rates and deployed the capital into hi ...