Brothers, let's review the impact of Japan's interest rate hikes on Bitcoin!📉🔥
The core destructive power of the Bank of Japan (BOJ) rate hikes actually comes from the "Yen Carry Trade" closing: for many years, Japan's ultra-low/negative interest rates allowed global institutions and speculators to borrow yen at almost zero cost, convert to USD, and invest in high-yield risk assets, including $BTC, US stocks, tech stocks, etc., totaling trillions of dollars!💰 Once Japan raises interest rates, the cost of borrowing yen increases + the yen appreciates, squeezing the arbitrage space, and everyone starts closing positions: selling risk assets, converting back to yen to repay debts, leading to a contraction of global liquidity. Bitcoin, as a high Beta risk asset, is often the first and most violently sold off!🤯 Historical data is super clear: March 2024 (first rate hike after ending negative rates): $BTC fell over 20-23% July 2024 rate hike: $BTC fell about 25-26%, once dropping from $65,000 to $50,000 January 2025 rate hike: $BTC fell over 30-31% After each rate hike, there is a short-term crash + massive liquidations, but in the medium to long term, there is often a rebound and strength because after deleveraging, BTC's "digital gold" safe-haven attribute is reinforced.📈 Now, by the end of 2025, Japan's government bond yields have hit multi-year highs, and the market prices in over a 90% chance of a rate hike in December. Brothers, be aware of short-term selling pressure! But remember: this is a liquidity event, not a fundamental collapse. Hold long-term, keep tight, and look for opportunities to buy low amid volatility.💎 What do you think? How much do you think BTC will drop this time after the rate hike? Share your thoughts in the comments!$BTC #比特币 #宏观 #日元套利 #DeFi
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Brothers, let's review the impact of Japan's interest rate hikes on Bitcoin!📉🔥
The core destructive power of the Bank of Japan (BOJ) rate hikes actually comes from the "Yen Carry Trade" closing: for many years, Japan's ultra-low/negative interest rates allowed global institutions and speculators to borrow yen at almost zero cost, convert to USD, and invest in high-yield risk assets, including $BTC, US stocks, tech stocks, etc., totaling trillions of dollars!💰
Once Japan raises interest rates, the cost of borrowing yen increases + the yen appreciates, squeezing the arbitrage space, and everyone starts closing positions: selling risk assets, converting back to yen to repay debts, leading to a contraction of global liquidity. Bitcoin, as a high Beta risk asset, is often the first and most violently sold off!🤯
Historical data is super clear:
March 2024 (first rate hike after ending negative rates): $BTC fell over 20-23%
July 2024 rate hike: $BTC fell about 25-26%, once dropping from $65,000 to $50,000
January 2025 rate hike: $BTC fell over 30-31%
After each rate hike, there is a short-term crash + massive liquidations, but in the medium to long term, there is often a rebound and strength because after deleveraging, BTC's "digital gold" safe-haven attribute is reinforced.📈
Now, by the end of 2025, Japan's government bond yields have hit multi-year highs, and the market prices in over a 90% chance of a rate hike in December. Brothers, be aware of short-term selling pressure! But remember: this is a liquidity event, not a fundamental collapse. Hold long-term, keep tight, and look for opportunities to buy low amid volatility.💎
What do you think? How much do you think BTC will drop this time after the rate hike? Share your thoughts in the comments!$BTC #比特币 #宏观 #日元套利 #DeFi