Odaily Planet Daily reported that Glassnode co-founder Negentropic published an analysis on X platform regarding the impact of Japan's interest rate hike. He pointed out that what the market fears is not tightening, but uncertainty. Sometimes market volatility can actually present an opportunity. The normalization of the Bank of Japan's policies has brought clarity to global capital markets, and Bitcoin typically thrives after experiencing policy pressures.
Previous analyses point out that the interest rate hike in Japan may not trigger risk-averse sentiment in the crypto market. First, speculators currently hold a significant net long (bullish) position in yen, so they are unlikely to react quickly to the Bank of Japan's interest rate hike. Second, Japanese government bond yields have continued to rise this year, with both short-term and long-term yield curves reaching decades-high levels. The upcoming interest rate hike reflects that the official rates are catching up with market movements, indicating a lower likelihood of risk-averse sentiment appearing by the end of the year.
