🇯🇵 Japan Interest Rate Hike – What It Means for Crypto

Japan’s central bank increasing interest rates signals a shift away from ultra-loose monetary policy. Higher rates strengthen the yen and reduce global liquidity, as Japanese capital that once flowed into risk assets may move back into bonds and savings.

Impact on Crypto:

📉 Short-term pressure: Higher global yields reduce appetite for risk assets like crypto.

💱 Yen strength effect: Stronger JPY can trigger unwinding of carry trades, causing volatility in BTC and alts.

🔄 Liquidity shift: Less cheap money means slower speculative inflows into the crypto market.

🕰️ Medium-term neutral: Crypto fundamentals remain driven by adoption, ETFs, and regulation, not Japan alone.

⚠️ Expect volatility, not a trend reversal.