Many people see Japan’s interest rate hike as pure bearish news, but the real impact is often misunderstood. The key issue isn’t the headline itself — it’s the capital movement behind it.
When the rate hike actually takes effect, a large amount of yen that was borrowed cheaply and deployed into crypto will start flowing back to Japan. Before the hike, there was no urgency to repay loans, so markets stayed relatively stable. That’s why an “interest rate hike” is not just news-driven fear, but a real internal migration of funds.
Yes, a pullback after the hike is very likely 📉, but the magnitude of the drop is usually smaller than the pre-hike panic, because most of the fear and positioning already happens in advance.
For now, I’m taking profits around 2780 and will reassess market structure before making the next move. Discipline over emotions.
Naseer Crypto expert
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