Bitcoin suddenly plummets? The expectations of interest rate hikes from the Bank of Japan are stirring the market.

Question

[Block Rhythm] Recently, BTC plummeted, and the possible driving force behind it may be signals coming from the Bank of Japan.

The market is watching the actions of the Bank of Japan in December—interest rate hike expectations are fermenting. Just look at the movement of the USD/JPY exchange rate to know that the rate is oscillating repeatedly within the range of 155 to 160, and this fluctuation pattern itself suggests that Japan's monetary policy stance has become considerably tighter than before.

Once the Japanese yen really starts to tighten liquidity, global risk assets will need to be repriced. Bitcoin, as a highly volatile asset, has always been sensitive to such macro variables, so it's not surprising that it reacts in advance.

4am_degen · Accepted Answer

The Bank of Japan is stirring things up again. Every time these guys make a move, the crypto world starts trembling.

So, as soon as there's talk of rate hikes, all high-volatility assets take a hit. BTC is so sensitive—there's really nothing that can be done about it.

It's the same old macro narrative. Honestly, crypto folks are tired of hearing it, but it's impossible to ignore.

With this 155-160 range consolidation, it feels like Japan is really about to make a big move.

As soon as liquidity tightens, us small retail investors are going to get trapped again.

To put it bluntly, the Bank of Japan's actions are dragging all global risk assets down, and Bitcoin can't escape it.

ReverseTradingGuru · Answer

Once again, shifting the blame to the Bank of Japan, I feel like there&#39;s always a new "culprit" every time there is a big dump.

I&#39;ve heard the logic about the yen tightening liquidity a hundred times already; the ones really dumping have long finished.

Instead of focusing on the exchange rate, it&#39;s better to look at the movements of Large Investors on the exchange, that&#39;s the real truth.

memecoin_therapy · Answer

The Bank of Japan is up to something again, is it the rhythm of the carry trade falling apart? Do they really want to ruin global assets just to be happy?

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It’s all about macro and exchange rates; to put it bluntly, it’s still about money being tight, so it’s normal for BTC to run first.

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A repeated fluctuation between 155 and 160, this tightening of the yen is expected to last for a while, and the crypto world can&#39;t wait.

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Once liquidity tightens, everyone will be kneeling; high volatility assets will be the first to suffer, and Bitcoin has already known this.

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Is the expectation for the Bank of Japan to raise interest rates really that explosive? It feels like every time it&#39;s the wolf coming, and then the coin price rebounds again.

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Damn, is it the Bank of Japan again? Can&#39;t we just hold our coins in peace for one day?

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Looks like we need to keep an eye on the Bank of Japan&#39;s meeting in December; is it really time to take action this time?

LayerZeroHero · Answer

The Bank of Japan is stirring things up again, and this wave can indeed explain the plummet of BTC. Those who were arbitraging with yen must be in a panic now.

Who can fully grasp the macro situation anyway? Just follow the market reaction and that&#39;s it.

The real show will start after breaking the trading range of 155-160, let&#39;s see who panics then.

MechanicalMartel · Answer

The Japanese Central Bank is really a master of disruption; every time it drags the crypto world down with it?

It’s a nested doll situation: Exchange Rate fluctuations → interest rate hike expectations → tightening Liquidity → BTC getting hit, the logic is a bit annoying in its consistency.

Wait, does this mean if the yen appreciates, the dollar depreciates? How will traditional assets perform?

Here comes another round of macro pricing; every time it’s said that Bitcoin is "sensitive," but it feels like it’s just looking for excuses for the fall...

Going back and forth between 155 and 160, instead of guessing the Central Bank&#39;s thoughts, it’s better to look at on-chain data, brother.

To put it bluntly, it’s still the same: risk assets are uniformly suffering; the question is when can we break free from this fate?