On the 19th, Japan may raise interest rates, which could lead to a bearish sentiment in the cryptocurrency market in the short term. Focus on this👇
Japan has had low interest rates for many years, with funds relying on borrowing yen to trade Bitcoin.
Once interest rates rise, carry trades will reverse, leading to capital outflows and high-risk assets will drop first.
History is very clear:
After each interest rate hike in Japan, Bitcoin typically sees a short-term average correction of 20–30%, lasting a few weeks.
Market expectations this time:
On the 19th, interest rates may rise to 0.75%, with two possible scenarios:
Negative news not fully priced in → further decline
Negative news already priced in → "sell the expectation, buy the fact" rebound
👉 Japan's interest rate hike is a short-term negative, not a long-term one.
In the next couple of days, focus on controlling positions, monitor the yen exchange rate + US stocks, and don't rush in.
