The increase in interest rates by the Bank of Japan is considered a pressure factor on risk markets, including cryptocurrencies. When interest rates rise, liquidity decreases and some investors turn to safer traditional assets, which may cause a correction or temporary fluctuations in the prices of Bitcoin and altcoins.
However, the impact of the Japanese decision remains limited compared to the U.S. Federal Reserve, and is often short-term, especially if the decision is anticipated and already priced in the market. Therefore, the Japanese interest rate hike alone is not a sufficient factor to change the overall trend of the crypto market, but merely a catalyst for short-term volatility.$BTC
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