Japan's surprise announcement sent shockwaves through the market, catching many crypto traders off guard. While many on Binance anticipated a Bitcoin rally, the price action turned south, liquidating numerous long positions.

The catalyst was not market manipulation but a significant economic decision. Japan raised its interest rates to a 30-year high, a move that immediately impacted global liquidity flows.

Higher interest rates make borrowing more costly for both individuals and institutions. This typically leads to reduced borrowing, slower business expansion, and tighter liquidity. Consequently, investors often become more risk-averse.

High-risk assets like Bitcoin can see capital outflows in such an environment.

This price movement was fundamentally driven by macroeconomic factors and global liquidity shifts, not just chart patterns. While many focused on price action, keen observers of macro signals were already anticipating a potential downturn.

Bitcoin faced resistance around the 93,000–94,000 range, subsequently declining towards the 89,000 level, aligning with expectations following the liquidity tightening.

This event serves as a potent reminder that markets often react to news and policy decisions before technical indicators fully price in the changes. 📉

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