Japan's Bank of Japan (BOJ) is expected to raise interest rates by 0.25% on December 19, potentially impacting global liquidity and risk assets like Bitcoin. Here's the breakdown:
- Why it matters: Japan is a major holder of U.S. government debt. A rate hike could pull money back to Japan, reducing global liquidity. Riskier assets like Bitcoin often suffer first when liquidity tightens.
- Historical impact on $BTC Bitcoin:
- March 2024: BTC dropped ~23%
- July 2024: BTC dropped ~26%
- January 2025: BTC dropped ~31%
This doesn't guarantee the same outcome, but past trends suggest Bitcoin could face pressure, potentially dropping toward $70,000 if sellers take control.
- Monitor:
- Yen exchange rates
- Japanese government bond yields vs. U.S. Treasuries
- Bitcoin exchange reserves for selling pressure
-Danish-Crypto' Call: You mentioned they warned about a dump from the $90K zone, and it played out. Timing and analysis are crucial.
