BOJ Rate Hike Recap
Policy rate raised 25 bps → 0.75%, highest in ~30 years.
This was already widely expected, so markets had largely priced it in.
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Why BTC Didn’t Dump
1. Pullback happened earlier: BTC had already dipped to ~$84,422 before the official announcement.
2. Weak positions flushed: Traders using leverage were punished earlier (around Dec 14–15), so there’s less fuel for a sudden crash now.
3. Support from CPI data: Yesterday’s cooler inflation numbers gave risk assets short-term relief.
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Current Market Drivers
Leverage traders still moving prices: Short-term volatility persists.
Smart money in US session: After 9:30 AM ET, institutional activity could decide the next move.
If institutions fade the bounce → controlled dip possible.
If institutions stay bullish → BTC likely continues sideways/choppy with squeezes on late positions.
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Key Takeaway
Today’s BOJ hike is contextual, not a trigger for immediate drops.
BTC direction now depends more on US session institutional flows than Japanese rate news.
For traders: the market has mostly “priced in” the event; watching smart money is more important than reacting to the headline.
