Today, the 5th rate hike by the Bank of Japan (BOJ) is expected! I’ve illustrated all the previous 4 times and Bitcoin’s reaction to this decision. There are no clear patterns — neither in the percentage of decline/growth, nor in the number of days for the drop or recovery!

On social media, people are hyping that there will be a 30%+ drop and it will last for a long time. In theory, anything is possible, because BTC suffers the most:

BTC is a high-risk asset with high liquidity (easy to sell).

Leverage in crypto is enormous → cascade liquidations.

Global liquidity is tightening (even if the Fed is easing).

But the thing is, people often find explanations after the fact! And if there is a drop, it’s not necessarily a direct reaction to the BOJ rate hike. It could simply be profit-taking or selling of a speculative, useless asset!

And if there’s a rise instead, the crowd will start singing the old song again that Bitcoin is the salvation from all the troubles in the world 😂 $BTC

BTC

63,625.91

+1.78%