The Bank of Japan will decide whether to raise interest rates this Thursday or Friday. Currently, the probability of a rate hike has reached 98%, which is probably a certainty.

What about the impact on the crypto market? The answer is very clear: bearish.
This means Bitcoin breaking below the trend line, Ethereum breaking below the 4-hour long-short dividing line, possibly due to the rate hike in Japan.
A sharp decline would allow large traders to acquire lower-priced chips, which is a good opportunity for market manipulation.
The US currently has an interest rate of 3.75%. If Japan raises it to 0.75%, the interest rate differential will still be 3%. For investors, this interest rate gap is enough to support carry trades.
That is, borrowing yen to buy dollar assets is still very profitable.
The yen is still one of the lowest funding currencies globally, and with a 3% interest rate differential, funds will not actively end the carry trade structure.
Recently, market volatility has been significant, so no matter what, defensive measures must be in place.