🚨 Japan Raises Rates to the Highest in 30 Years — Bitcoin Remains Steady 🚨
The Bank of Japan has increased its key interest rate by 25 basis points to reach 0.75%, marking the highest rate in nearly three decades. While this may seem surprising at first glance, the response from the market suggests a more subdued reaction.
Bitcoin did not experience a downturn following the announcement. The decline had already taken place earlier, with BTC dropping to around $84,400 before stabilizing. There was no rush to sell in response to the news since the rate increase had been anticipated and factored into the market well in advance.
The theme of tightening by the BOJ was actually observed around December 14-15, affected by weekend fluctuations and low liquidity. It was during this time that many overleveraged positions were liquidated. By the time the confirmation arrived today, most of the weak investors had already exited.
In support of this, the CPI report released yesterday lessened the pressure on risk assets. The easing inflation figures helped mitigate any residual concern regarding Japan’s decision and stopped BTC from declining further.
Currently, trading activities are still heavily influenced by leverage. A crucial turning point will occur when the U. S. market opens at 9:30 AM ET, as institutional traders begin to participate. If seasoned investors choose to sell into any strength, a modest pullback could potentially occur. If they do not, BTC is likely to continue fluctuating within its current range, affecting both long and short positions.
👉 My perspective is that the BOJ rate increase serves as context rather than a catalyst for new changes. The previous sell-off has already taken place, the CPI has stabilized market sentiment, and future movement will depend on how institutions choose to act during the U. S. trading session.
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