Bluechip
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🚨🚨 WE MAY SEE ANOTHER MASSIVE CRYPTO MARKET CRASH IN DECEMBER
But this could be the final bottom before the 2026 rally.
Japan is likely to raise interest rates again around the December 18-19 meeting.
This is important because Japan has kept interest rates very low for many years.
Because money was cheap, investors borrowed yen and put that money into stocks, crypto, and other assets.
This is called the yen carry trade.
Now that Japan is raising rates, borrowing in yen is becoming expensive. When borrowing gets expensive, investors are forced to pay back loans.
To do that, they sell assets.
- That selling pressure hits global markets.
- You can see this clearly in the chart.
In July 2024 when Japan did a rate hike, Bitcoin dropped around 26% in a week.
In January 2025 BOJ did a rate hike again, and Bitcoin dropped about 25% over the next few weeks.
Each time Japan raised rates, markets fell soon after.
If Japan raises rates again in December, we could see a similar move:
- Sharp drop in stocks
- Fast sell off in crypto
- High volatility
- Forced liquidations
This type of move usually happens quickly, not slowly. But this is only the short term picture.
Japan’s economy is weak right now.
Japan’s latest GDP came in at -0.6%, worse than expectations of -0.4%.
Because of this, Japan cannot keep tightening for long.
At the same time, the Japanese government has announced a ¥17 trillion stimulus program, focused on supporting growth and stabilizing markets.
Bond buying adds liquidity and helps stabilize the system.
So after a fast sell off, markets usually start to stabilize.
Once panic selling is over:
- Weak positions are gone
- Selling pressure reduces
- A base starts forming
Now add the global picture.
The US, China, and Canada are already moving toward easing policy.
Over time, this increases liquidity across markets.
That is why this matters.
A Japan rate hike can cause short-term pain, but after that reset, conditions can improve.
If liquidity continues to return, 2026 can still turn out strong for markets, including crypto..
$BTC
This article is for information and education only and is not investment advice. Crypto assets are volatile and high risk. Do your own research.
📌 Follow @Bluechip for unfiltered crypto intelligence, feel free to bookmark & share.
Japan is likely to raise interest rates again around the December 18-19 meeting.
This is important because Japan has kept interest rates very low for many years.
Because money was cheap, investors borrowed yen and put that money into stocks, crypto, and other assets.
This is called the yen carry trade.
Now that Japan is raising rates, borrowing in yen is becoming expensive. When borrowing gets expensive, investors are forced to pay back loans.
To do that, they sell assets.
- That selling pressure hits global markets.
- You can see this clearly in the chart.
In July 2024 when Japan did a rate hike, Bitcoin dropped around 26% in a week.
In January 2025 BOJ did a rate hike again, and Bitcoin dropped about 25% over the next few weeks.
Each time Japan raised rates, markets fell soon after.
If Japan raises rates again in December, we could see a similar move:
- Sharp drop in stocks
- Fast sell off in crypto
- High volatility
- Forced liquidations
This type of move usually happens quickly, not slowly. But this is only the short term picture.
Japan’s economy is weak right now.
Japan’s latest GDP came in at -0.6%, worse than expectations of -0.4%.
Because of this, Japan cannot keep tightening for long.
At the same time, the Japanese government has announced a ¥17 trillion stimulus program, focused on supporting growth and stabilizing markets.
Bond buying adds liquidity and helps stabilize the system.
So after a fast sell off, markets usually start to stabilize.
Once panic selling is over:
- Weak positions are gone
- Selling pressure reduces
- A base starts forming
Now add the global picture.
The US, China, and Canada are already moving toward easing policy.
Over time, this increases liquidity across markets.
That is why this matters.
A Japan rate hike can cause short-term pain, but after that reset, conditions can improve.
If liquidity continues to return, 2026 can still turn out strong for markets, including crypto..
$BTC
This article is for information and education only and is not investment advice. Crypto assets are volatile and high risk. Do your own research.
📌 Follow @Bluechip for unfiltered crypto intelligence, feel free to bookmark & share.
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
