✨Japan Raises Rates to 30-Year High — Bitcoin Holds Firm⭐
The Bank of Japan has officially raised its policy rate by 25 basis points to 0.75%, the highest level in roughly three decades. While the headline sounds significant, market behavior tells a much calmer story—especially for Bitcoin.
Despite expectations of downside pressure, Bitcoin did not sell off following the announcement. Any meaningful downside already occurred earlier, when BTC briefly dipped to around $84,422 before stabilizing. By the time the BOJ decision was confirmed, the move was largely priced in.
This rate hike narrative had already played out twice around December 14–15, a period marked by weekend volatility and thin liquidity. That environment punished overleveraged traders and flushed out weak positions well before today’s announcement. As a result, there was little left to unwind when the news became official.
Another stabilizing factor was the release of cooler U.S. CPI data the day before, which provided short-term relief across risk assets. That data helped absorb any remaining anxiety tied to the BOJ decision and prevented further downside in BTC.
At present, Bitcoin’s price action remains largely driven by leverage traders. The more important inflection point comes after the U.S. market opens at 9:30 AM ET, when institutional participants typically step in. If smart money chooses to fade the current bounce, a controlled pullback is possible. If not, BTC is likely to continue chopping higher and squeezing late-positioned traders.
Bottom Line
The BOJ rate hike adds macro context, not an immediate catalyst. The downside move already happened, CPI helped stabilize sentiment, and near-term direction now depends on how institutions trade the U.S. session.
Keep thinking.
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