Japan's potential interest rate hike this week could impact Bitcoin's price. š§ šÆšµ
Historically, when Japan has increased its interest rates, Bitcoin has experienced a price drop of approximately 20-25%.
This phenomenon can be explained by understanding how monetary policy affects asset markets.
Here's a breakdown:
When Japan hikes rates, the cost of borrowing money increases. šø
This typically leads to a reduction in liquidity flowing into riskier assets.
Cryptocurrencies, including Bitcoin, are considered risk assets, similar to equities. š
Consequently, capital may be withdrawn from both crypto and stock markets.
This outflow often results in a decline in Bitcoin's price.
With Japan's next rate decision approaching, there's a possibility of a hike, potentially to 75 basis points.
If this occurs, Bitcoin might face significant downward pressure, possibly breaking below $70K around December 19th. ā ļø
This information is shared to help you prepare for potential market movements, not to incite panic. ā
Markets often react to shifts in liquidity rather than mere manipulation.
Savvy traders anticipate these changes and plan accordingly. š§©
Keep a close eye on Japan's rate decision. š
PandaTraders will provide updates on potential market movements.
Yesterday, we signaled a relief pump for BTC towards $90K, and it occurred as predicted, rising from the $88K area. šÆ
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