🚨History Repeats Itself: BTC Drops Before Japan's Rate Hike
#BTC sensed the pressure from the Bank of Japan's expected 25 basis point rate hike. The market preemptively mitigated risk, with traders reducing positions and unleveraging, causing BTC to fall before the announcement.
Historically, after each #日央行加息 event, BTC experienced a significant correction: -23% in March 2024, -26% in July 2024, and -31% in January 2025. This time, the situation is similar, but the market has already absorbed most of the pressure.
Exchange fund inflows increased in advance, and financing rates fell, indicating that the sell-off had already begun. After the decision is announced, the key is the yen's reaction: if the yen is strong, BTC may continue to be under pressure; if volatility is limited, there is a high chance of a short-term rebound.
In other words, the rate hike itself is not important; the market is more sensitive to future liquidity and the yen's performance.
