Japan has quietly supported global markets for many years... and now that support is fading.
Here’s what Japan has been doing (in very simple words) 👇
1. For nearly 30 years, Japan has kept interest rates near zero.
2. This means that borrowing Japanese yen has been very cheap.
3. Big investors used this cheap yen like "fuel":
Borrowing yen at low cost
Converting it to dollars/other currencies
Buying stocks, bonds, and cryptocurrencies
This is called yen borrowing trade.
What has changed now? ⚠️
Japan is raising interest rates (the highest expected in 31 years)
Why does this matter for cryptocurrencies and global markets?
Because when yen borrowing becomes expensive... the opposite happens 👇
1. Investors borrow less money
2. Many investors are reducing high-risk positions
3. Some will sell assets (including cryptocurrencies) to pay off yen loans
4. This means liquidity can leave the market
And when liquidity leaves, the markets feel the pressure.
That's why December 19 is important.
If Japan raises interest rates, we could see a strong downward move in cryptocurrencies as well.
We've seen this pattern before 📉
March 2024: Japan rises → BTC dropped by about 23%
July 2024: Japan rises → BTC dropped by about 26%
January 2025: Japan rises → BTC dropped by about 31%
So, trade cautiously
Volatility around December 19 can be immense. If interest rates rise, BTC is expected to drop to 70K
As usual, Panda Traders monitors the market around the clock for you and maintains the legacy of your information before every major crash and every big pump‼️
Once we receive confirmation, we will consider selling BTC on December 19
Continue to follow Panda Traders for daily updates on BTC and crash alerts ✅
