🇯🇵 The Bank of Japan (BoJ) has raised interest rates to 0.75% — the highest level in nearly 30 years 🤯
Now let's analyze why this move could have a strong impact on global markets, especially crypto.
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🌍 1. Japan & the role of the 'cheap liquidity pump'
For many years, Japan has been the cheapest source of liquidity in the world.
Global investors often:
Japanese Yen Loan with extremely low interest rates
Then invest in stocks, bonds, gold, and even cryptocurrencies
This is called Carry Trade — cheap borrowing → investing in risky assets with higher yields.
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🔄 2. What changes when interest rates rise?
When BoJ raises interest rates:
Yen loans are no longer cheap
Carry Trade loses attractiveness
Money flow is starting to return to Japan
👉 Global liquidity is being reduced
👉 When liquidity decreases, most risky asset markets struggle.
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🪙 3. Direct impact on the Crypto market
Crypto is a market that heavily depends on liquidity:
Less new money → weak demand
Increased volatility
Selling pressure is higher
📉 In this context, Bitcoin may continue to face short-term pressure.
👉 $BTC there is a complete possibility of a correction to around ~$70,000 in the coming week.
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⚠️ 4. Important: This is NOT a 'collapse' signal
I'm not saying Bitcoin will definitely crash hard.
What I'm saying is:
A drop to ~$70k could completely happen
And this could be a VERY GOOD BUYING OPPORTUNITY at the end of December
📈 From January onwards, when the market absorbs the liquidity shock:
Money flow is coming back
The market is recovering
Profit-taking target by mid-January 🔥
