Again, the Bank of Japan (BOJ) rate hike signals are aligning with Bitcoin's downside — and this pattern is becoming harder to ignore 📉👀
Looking at past data, a strong dump in BTC has been observed after every BOJ rate hike:
🔻 A drop of ~23% after one hike
🔻 A second time ~27% downside
🔻 The recent hike resulted in a brutal correction of ~32%
Now that the next BOJ tightening event is approaching, Bitcoin is already showing signs of pressure ⚠️
---
🌊💱 Why is the BOJ so important for Bitcoin?
When Japan tightens policy:
💴 Yen experiences volatility
🌍 Global liquidity tightens
📉 Risk assets become weak
Bitcoin's short-term reaction has often been negative, even if the long-term story is strong 🟠
This does not guarantee that it will be the same every time, but markets often follow patterns until they break.
---
📊⚡ Could this time be different?
Yes, it's possible. Every cycle is different.
But if history repeats:
⚠️ High volatility may come
⚠️ Leverage washout may occur
⚠️ Downside liquidity hunts may happen
This does not end Bitcoin's long-term future 🟠
But in the short-term, risk becomes high for over-leveraged traders.
---
🧭📌 Final Thought
Macro still matters.
Liquidity still matters.
And Japan keeps appearing on the Bitcoin chart 👀🇯🇵
Trade carefully. Manage risk. Stay updated.
Follow Wendy for the latest crypto & macro updates 🔔
