$BTC
The Bank of Japan is a critical driver of global liquidity.
BoJ’s expected 25 bps rate hike on Dec. 19 could have outsized effects on risk assets, including Bitcoin.
Bitcoin has fallen 20%–30% after each of the last three BoJ rate hikes, underscoring its sensitivity to Japanese monetary policy.
When the BoJ tightens, the yen strengthens and carry trades unwind, draining liquidity and forcing leveraged investors to sell risk assets
