Last March, the Bank of Japan broke the silence by announcing the end of its eight-year negative interest rate policy, raising rates from -0.1% to 0-0.1%. This was the first rate hike since 2007, and the market reacted immediately. In the same month, Bitcoin experienced two significant corrections: on March 18, it dropped from 68,800 to 66,600, a decline of 2,200 points; the next day, it fell from 68,000 to 61,500, with a single-day drop of 6,500 points.

Fast forward to the end of January this year. The Bank of Japan once again took action, announcing a 25 basis point rate hike, with the policy rate rising from 0.25% to 0.50%—the highest level in 17 years. The market adjusted again, with Bitcoin falling from 106,800 to 101,500 on January 23, and continuing to decline from 107,200 to 102,800 on the 24th. Although the price reactions to the two rate hike cycles varied in magnitude, they pointed in the same direction.

Interestingly, every time the Bank of Japan signals a policy change, Bitcoin tends to respond accordingly. This may reflect concerns about tightening global liquidity—when the yen's rate hike expectations strengthen, risk assets are under pressure, which becomes a highly probable outcome.