What is Japan rate hike?

Japan increased its interest rate, meaning borrowing money becomes more expensive and saving money gives better returns. For many years, Japan had very low rates.

What effect does it have on crypto?

When interest rates go up, people prefer safe options like banks and bonds

Money moves out of risky assets like crypto

This can cause short-term drop or volatility in crypto prices

A stronger Japanese yen can also reduce easy money flowing into crypto

Simple summary:

👉 Rate hike = less cheap money

👉 Less cheap money = pressure on crypto in short term