🇯🇵 The End of “Free Money”
For decades, Japan acted as the world’s ultimate ATM. With interest rates near zero, major institutions borrowed Yen at almost no cost, converted it into USD, and funneled it into high-growth assets like tech stocks and crypto.
That era is coming to an end.
By raising rates to 0.75% — the highest level since the mid-1990s — the Bank of Japan is effectively shutting off the tap.
🔄 The Chain Reaction
Higher borrowing costs: Yen-funded loans are no longer cheap to maintain.
Deleveraging pressure: Investors sell risk assets (stocks and crypto) to repay Yen debt.
Liquidity vacuum: Capital flows back to Japan, reducing global liquidity and available “dry powder” for crypto markets.
📉 Crypto Impact: Eyes on $70,000
Crypto remains the most sensitive gauge of global liquidity. When the Yen tightens, Bitcoin typically feels it first.
Short-term outlook: Expect volatility. BTC could revisit the $70,000 support zone as markets reprice this shift.
The dip narrative: A move toward $70K isn’t a breakdown — it’s a potential re-entry zone. Historically, liquidity shocks create sharp pullbacks, not long-term bear markets.
📅 The Game Plan
Macro conditions are shifting, but seasonality remains favorable. Here’s the positioning:
Period
Strategy
Late December
Accumulation phase. Look for entries near $70K if volatility spikes.
Early January
Recovery phase. New-year capital inflows may offset BoJ-driven pressure.
Mid-January
Take profit. Lock in gains ahead of the next macro rotation.
💡 Bottom Line
Moves like this are designed to shake out weak hands. Stay disciplined, manage leverage carefully, and don’t let a 0.75% rate hike derail a long-term bull thesis.
Stay sharp. Watch liquidity. Respect the charts.
$BTC | BTCUSDT Perp — 88,215.2 (+1.11%)
$ALCH — 0.20211 (+1.9%)
$PENGU | PENGUUSDT Perp — 0.009256 (+0.56%)
#FederalReserve2026
