🇯🇵 Bitcoin and the Bank of Japan
Tomorrow the Bank of Japan's decision on the interest rate. The market is pricing in a 98.4% probability of a 25 bps increase.
History has shown BTC's reaction to BOJ decisions twice:
▪️ July 31, 2024
- BOJ raised the rate to 0.25%.
- Bitcoin fell by 26% over 8 days.
▪️ January 24, 2025
- Rate raised to 0.50%.
- $BTC fell by 25% over 20 days.
🛍 An increase to 0.75% is expected tomorrow — the highest since 1995.
Based on past events, it is quite realistic to expect a local downturn in the market, but there is an important nuance.
📈 Every previous "Japanese dump" of BTC ended with a strong rebound and a new ATH.
So in the short term, we may have a continuation of the correction, but globally there are all chances to recover and go for new highs.
From tomorrow, we will observe if history repeats itself for the third time 🍿
