Bank of Japan hikes interest rates to 0.75% — the highest in 30 years. Why does this matter?

For years, Japan acted as a major source of cheap global money. Investors borrowed yen at ultra-low rates and poured that capital into stocks, bonds, gold, and even crypto. This worked because borrowing costs were low and risk assets offered higher returns.

Now the game has changed. With Japan raising interest rates, borrowing yen is no longer cheap. As a result, fewer investors will use the yen carry trade, and some existing capital will start flowing back to Japan. This pulls liquidity out of global markets. When liquidity tightens, risk assets usually struggle—making the environment broadly bearish.

Crypto is especially sensitive to liquidity. Less money means weaker demand, higher volatility, and more downside pressure. Because of this, the crypto market could stay soft in the coming days. Bitcoin may retest the $77,000 - $78,000 zone in the near term.

This isn’t a crash call. A dip toward $70K could actually become a strong buying opportunity by late December.