🚨 Everyone is talking about the Bank of Japan (BoJ) and its upcoming rate decision on December 19th‼️
Markets are pricing in a high probability of a rate hike to 0.75%—and history says Crypto should pay attention.
📉 Why does Japan move Bitcoin?
For years, investors used the "Yen Carry Trade": borrowing Yen at near-zero interest rates to buy high-risk assets like Bitcoin ( $BTC ).
When Japan raises rates:
The Yen gets stronger: Making those "cheap" loans expensive to pay back.
Deleveraging kicks in: Investors are forced to sell their crypto to cover their Yen debts.
Liquidity Drains: Japan is the world’s largest holder of U.S. debt; when they tighten, global dollar liquidity shrinks.
📊 What does History tell us?
The BoJ has been a "Bitcoin Killer" in recent cycles. Look at the drawdowns following previous hikes:
March 2024: BTC dropped ~23%
July 2024: BTC dropped ~26%
January 2025: BTC dropped ~31%
⚠️ The Risk Zone
If history repeats, analysts warn that a 20-30% correction could be on the horizon, potentially testing the $70,000 - $75,000 support levels.
Keep your stops tight and your eyes on the Yen! 💴
