Japan's interest rate hike countdown: Bitcoin stands on the eve of the storm
A major storm is approaching! On December 19, the Bank of Japan will unleash its most aggressive interest rate hike in thirty years — a radical adjustment of 75 basis points. This financial bomb has yet to land, but its power is already sweeping across global markets.
Analysts urgently warn: Bitcoin is facing a shock, with the critical support level of $63,000 on shaky ground, and the risk of a sharp decline looms large.
This interest rate hike marks the end of Japan's negative interest rate era, as a massive influx of cheap yen funds will flow back to the homeland like a tide.
The hot money that once surged into high-risk assets like cryptocurrencies is now being frantically withdrawn, and the pressure of shrinking market liquidity has quietly begun to manifest.
Several traders have stated that once the policy is implemented, the short-term support for Bitcoin is likely to be lost, and a new round of intense volatility is imminent.
Looking back at history, global central bank tightening cycles have always been a "nightmare" for Bitcoin, and this historic policy shift in Japan is likely to trigger unexpected turbulence.
The current crypto market is already in the eye of the storm; the wave of profit-taking after the interest rate hike and the repricing of risk assets will expose holders directly to the storm.
The flow of funds before the 19th becomes crucial: if safe-haven funds flee early, Bitcoin's decline may start ahead of time.
Besides whether Bitcoin can hold its critical support, whether the more volatile altcoins will face greater declines has also become a focal point of market attention.
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