The Impact of Japan's Interest Rate Hike on the Cryptocurrency Market

Recently, the possibility of Japan raising interest rates has increased, so how will it affect the cryptocurrency market?

Japan has previously been a low-interest-rate country, with many institutions borrowing money to obtain low-cost yen, investing in high-yield U.S. Treasury bonds to earn interest differentials.

If Japan raises interest rates, the cost of borrowing will increase, leading to no profits, and such transactions will no longer be feasible.

This will result in Japanese institutions selling off U.S. Treasury bonds,

causing U.S. Treasury bond prices to fall and yields to rise,

thereby indirectly creating a slight bearish risk for assets, including cryptocurrencies.

The impact of Japan's interest rate hike is indirect and only affects Japan's domestic financial market.

The influence of the Federal Reserve is greater, and the key to the rise and fall of the cryptocurrency market still depends on the Federal Reserve's policies.

Therefore, the Federal Reserve's policies also depend on economic data, so pay attention to the following events:

Today at 23:00, Federal Reserve Governor Bowman will speak;

Tomorrow at 21:15, U.S. November ADP employment figures;

Thursday at 21:30, U.S. initial claims for unemployment benefits for the week ending November 29 (in ten thousand);

Friday at 23:00, U.S. PCE price index year-on-year;

Friday at 23:00, U.S. December one-year inflation rate forecast initial value;

Friday at 23:00, U.S. December University of Michigan Consumer Sentiment Index initial value.