BOJ Rate Decision Ahead: Market Risk in Focus
Crypto markets saw $150 million in long positions liquidated over the last 30 minutes, signaling a sharp short-term sell-off.
The Bank of Japan announces its rate decision tomorrow, with markets pricing a 98.4% chance of a 25 bps hike.
Past BOJ hikes hit Bitcoin short term:
Jul 31, 2024: Rates raised to 0.25%, BTC fell 26% in 8 days
Jan 24, 2025: Rates raised to 0.50%, BTC dropped 25% in 20 days
This time, BOJ is expected to lift rates to 0.75%, the highest since 1995. History suggests near-term downside is possible, but previous BOJ-led BTC sell-offs were followed by strong rebounds and new all-time highs.
