BOJ is expected to hike rates on Dec 18–19, and every recent hike triggered a sharp Bitcoin drop:
- July 2024: -26%
- Jan 2025: -25%
Higher yen rates kill the carry trade – investors unwind positions and sell risk assets to repay yen loans
That selling hits stocks and crypto fast
Short-term, another spike in volatility is possible
But Japan can’t tighten for long: GDP is shrinking, and the government just launched a ¥17T stimulus to support liquidity
After the shakeout, weak hands clear, selling pressure fades, and markets usually rebuild a base
Globally, major economies are already shifting toward easier policy – a setup that strengthens 2026, not kills it
Short-term pain, long-term opportunity
