Today, December 19, 2025, the Bank of Japan (BoJ) made a historic decision, raising the key interest rate to 0.75% — the highest level in the last 30 years. Although the number seems small, it is a real tectonic shift for global liquidity.
📉 Why is this hitting Bitcoin?
The main reason is the collapse of the Yen Carry Trade. For years, investors borrowed yen at 0% for free to buy risky assets (US stocks, $BTC, $ETH). Now the rules of the game have changed:
Liquidity contraction: When interest rates in Japan rise, "cheap money" disappears. Investors are forced to close positions in crypto to repay loans in yen.
Historical pattern: The previous three rate hikes by BoJ (March, July 2024, and January 2025) were accompanied by a decline in Bitcoin by 23% – 32% in the following weeks.
Pressure on the price: Analysts warn that this move could trigger a correction $BTC to levels $70,000 – $75,000 if capital begins to massively return to the domestic market of Japan.
⚖️ Current situation:
After the announcement, the price $BTC initially fell below $86,000 but quickly bounced back to $88,000, as the market had partially already priced in this decision. However, the long-term effect of cooling global liquidity is just beginning to manifest.
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