An upcoming interest rate hike in Japan is unlikely to shake crypto market sentiment this time around. In the past, a yen rate increase triggered strong risk-off behavior, pushing Bitcoin down sharply, but current conditions look very different.
Speculators are already positioned long on the yen, which reduces the chance of a sudden market reaction. At the same time, Japanese bond yields have been climbing all year, meaning the expected rate hike is simply catching up with what markets have already priced in. With the U.S. Federal Reserve cutting rates and adding liquidity, the risk of major carry trade unwinding appears low, making a sharp crypto market response less likely.
