$BTC
Brothers, let's review the impact of Japan's interest rate hike on Bitcoin's trend!
The core destructive power of the Bank of Japan's (BOJ) interest rate hike actually comes from the unwinding of "Yen Carry Trade": For many years, Japan's ultra-low/negative interest rates have allowed global institutions and speculators to borrow yen at almost zero cost, converting it into dollars to invest in high-yield risk assets, including $BTC, U.S. stocks, tech stocks, etc., with a scale of up to trillions of dollars!
Once Japan raises interest rates, the cost of borrowing yen increases + yen appreciates, compressing arbitrage space, leading everyone to start unwinding: selling risk assets and converting back to yen to repay debts, resulting in a global liquidity contraction. Bitcoin, as a high Beta risk asset, is often the first and hardest hit!
Historical data is super clear:
In March 2024 (the first interest rate hike ending negative interest rates): $BTC dropped over 20-23%
In July 2024 interest rate hike: $BTC dropped about 25-26%, once plummeting from $65,000 to $50,000
In January 2025 interest rate hike: btc dropped over 30-31%
After each rate hike, there is a short-term crash + a large number of liquidations, but in the medium to long term, it often rebounds strongly, because after the leverage is cleared, BTC's "digital gold" safe-haven property is reinforced📈
Now at the end of 2025, Japan's government bond yields have reached a multi-year high, and the market is pricing in a probability of more than 90% for a December rate hike, brothers should be aware of short-term selling pressure! But remember: this is a liquidity event, not a fundamental collapse. Long-term holders should continue to hold tight and look for opportunities to buy low amid volatility.
How much do you think BTC will drop first after this rate hike? Let's chat in the comments!
Or brothers with ideas can come to the chat room to discuss. Brother Li can help you recover and flip your position.
