$BTC went down because of Bank of Japan (BoJ) policy tightening → strong Yen → global risk assets sell-off (including crypto).

Here is the simple explanation 👇

🇯🇵 What did Bank of Japan do?

Recently, BoJ signaled tighter monetary

policy, such as:

Ending or reducing easy money / low interest rates

Allowing Japanese bond yields to rise

Less liquidity in the global system

👉 This is bad for risky assets like Bitcoin.

💴 Why does Japan affect Bitcoin?

Japan is one of the biggest sources of cheap money globally.

For years:

investors borrowed cheap Yen

Invested in stocks, crypto, BTC

This is called the Yen carry trade.

Now what happened?

BoJ tightening → Yen gets stronger

Borrowing Yen becomes expensive

Investors close positions

They sell BTC to reduce risk ❌

📉 Why BTC price goes down

When BoJ tightens:

💧 Global liquidity reduces

😨 Investors move to safe assets

🧾 $BTC is treated as a risk asset short-term

💥 Selling pressure increases

So BTC dumps ⬇️

🧠 Important thing to understand

This is NOT because:

❌ Bitcoin is bad

❌ Bitcoin is dead

This is because of macro economics.

Long term:

BTC still benefits from money printing

Scarcity remains (21M supply)

🔮 What usually happens next?

Historically:

Short-term dump

Market stabilizes

Smart money accumulates

$BTC recovers if no further bad news

BTC dropped as Bank of Japan signaled tighter policy, strengthening Yen and triggering risk-off selling across crypto and stocks.