#CPIWatch Bitcoin Faces Potential 20% Decline Before Japan's Rate Decision

Bitcoin dropped 4% below $86,000 on Monday as markets braced for the Bank of Japan's interest rate decision this week. Economists predict another rate hike could trigger a 20% decline in the cryptocurrency, extending losses to $68,800 based on historical patterns from previous BOJ policy shifts.

What Happened: Rate Hike Predictions

An overwhelming 90% of economists—63 out of 70—surveyed between Dec. 2 and Dec. 9 forecast the BOJ will raise short-term interest rates from 0.50% to 0.75% at this week's meeting.

Historical data shows Bitcoin declined 23% following the BOJ's March 2024 rate hike, 26% after the July 2024 increase, and 31% following January's policy change