Japan has kept ultra-low ( even negative ) interest rates for over 30 years → Yen becomes the "cheapest money" in the world.
Major funds: - Borrow Yen at low interest - Convert to USD - Invest in risky assets: US stocks, Crypto (BTC, ETH...)
When BOJ raises interest rates: - Yen borrowing becomes more expensive - Funds must repay loans → Sell assets - Crypto sold first: High liquidity, volatile!
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
🇯🇵 Japan Raises Interest Rates – Why Bitcoin Often "Dumps" Hard
Every time BOJ ( the Bank of Japan ) raises interest rates → BTC usually drops 20-30%+.
Recent history:
- 03/2024: -23%
- 07/2024: -26%
- 01/2025: -31%
Not a coincidence – but **capital flow**!
🧠 **CORE: Yen Carry Trade**
Japan has kept ultra-low ( even negative ) interest rates for over 30 years → Yen becomes the "cheapest money" in the world.
Major funds:
- Borrow Yen at low interest
- Convert to USD
- Invest in risky assets: US stocks, Crypto (BTC, ETH...)
When BOJ raises interest rates:
- Yen borrowing becomes more expensive
- Funds must repay loans → Sell assets
- Crypto sold first: High liquidity, volatile!
📉 **BTC & Altcoins Take the Hit**
BTC drops 20-30% → Altcoins often dump 40-70% ( higher risk, lower liquidity ).
Currently (12/2025): The market fears BOJ will hike again to ~0.75% ( on 18-19/12). Many analysts predict BTC might test $70k if the pattern repeats.
🔥 **ADVANTAGE FOR MACRO-INSIGHTFUL TRADERS**
- Risk mitigation: Take profits early, hold stablecoins waiting for dips
- Buy the dip: Increase BTC holdings long-term
- No panic selling!
Bitcoin remains the "digital gold" of decentralization – but its price is sensitive to global liquidity.
💬 **Do you think this time BOJ hike will cause BTC to dump how much %? Or is it already priced in? Comment below!** 🚀
#Bitcoin #BOJ #YenCarryTrade #CryptoVimô $ETH $BTC $BTC