๐จ HOW WILL BITCOIN REACT TO JAPAN's RATE HIKE?
๐ฆThe Bank of Japan is expected to raise rates to 0.75%, a level not seen since 1995, and #Bitcoin is already not liking it.
WHY?๐คท
Because history isnโt kind to Bitcoin here...
๐๏ธDuring the last 3 BOJ rate hikes, BTC drops 20%+
Mar 2024 (+10bps): โ23%
Jul 2024 (+15bps): โ26%
Jan 2025 (+25bps): โ31%
Why does Japan move Bitcoin?
๐ฏ๐ต Japan owns more U.S. debt than any other country.
When its rates rise, money moves back to Japan, dollar liquidity dries up, and risk assets like BTC get sold.๐ฅ
So will we wee another DROP this week?
Well, we already saw a hint of this on Nov 30, when we got the confirmation Japan was rising rates.
$BTC dropped to ~$83K and $200B vanished from the crypto market.๐ฉธ
The BIG question now is...๐
Was that the shakeoutโฆ or is another move coming?