๐จ Bank of Japan Raises Rates โ Bitcoin Moves UP ๐จ
The Bank of Japan just lifted its policy rate to 0.75%.
On paper, thatโs usually bearish for risk assetsโฆ yet $BTC rallied instead ๐
So what happened?
๐ง The Market Already Knew
This rate hike wasnโt a surprise.
Markets had already priced it in with ~98% probability.
When expectations are this clear, the actual announcement loses its shock value.
๐๏ธ Tone > Decision
What truly mattered was the message, not the move.
The BOJ Governor made it clear:
Future rate hikes will continue
But very gradually and with caution
That reassurance calmed fears of a sudden collapse in the yen carry trade โ where low-cost yen borrowing flows into higher-yielding assets like crypto.
โ The Big Fear Didnโt Happen
Earlier this month, many traders warned:
A BOJ hike could send $BTC below $70K due to liquidity tightening.
Instead? โ๏ธ The risk was absorbed early
โ๏ธ Selling pressure never materialized
โ๏ธ Price reacted bullishly
๐ Key Takeaway
Markets donโt react to headlines โ they react to:
Liquidity conditions
Positioning
Expectations vs reality
Central bank decisions matterโฆ
But how prepared the market is matters far more.
Stay sharp. Trade expectations, not emotions โก