**Japan's Rate Hike: A Macro Event to Watch 🚨**
**Interest Rates on the Rise**
The Bank of Japan is expected to increase interest rates by 0.25%. This move has significant implications for global markets, including cryptocurrency.
**Reduced Liquidity, Increased Pressure**
As interest rates rise in Japan, money may flow back into the country, reducing overall liquidity in global markets. Riskier assets, such as Bitcoin, tend to feel pressure when liquidity tightens.
**A Look at History 📊**
When the Bank of Japan raised rates recently:
• March 2024: BTC dropped around 23%
• July 2024: BTC dropped around 26%
• January 2025: BTC dropped around 31%
While markets never repeat perfectly, this history suggests a strong correlation between rate hikes and Bitcoin's performance.
**Potential Consequences 🚫**
If sellers gain control again, Bitcoin could drop to $70,000 or lower. Timing and analysis are crucial in navigating such market events.
**PandaTraders' Insights 🐼**
As we've seen before, accurate analysis and understanding of liquidity, structure, and macro events can help predict market movements. Follow PandaTraders for daily Bitcoin analysis that's simple, clear, and ahead of time! 📉
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