The global crypto market
Looking at the earlier BOJ rate hike data shows strong sensitivity to Japan’s interest rate changes. The Bitcoin price after BOJ rate hike in January 2026 reflected this clearly, as Bitcoin fell nearly 3% shortly after the Bank of Japan raised rates to 0.75%. This showed how quickly crypto markets react when global liquidity conditions change. When interest rates increase, borrowing becomes more expensive, which reduces the flow of capital into risk assets like Bitcoin. If the Bank of Japan raises rates again toward 1%, analysts warn Bitcoin could face more downside pressure. Some estimates suggest a possible 4% to 5% decline, which may push the Bitcoin price closer to the $60,000 level. Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more. Japan is a major source of global liquidity due to its large holdings of foreign assets. When the BOJ raises rates, it strengthens the yen and unwinds yen carry trades, reducing the flow of capital into risk assets like Bitcoin and causing market pressure. Japan has kept rates near zero for years, making it the primary source of the yen carry trade. When the BOJ hikes rates, the yen strengthens, making these trades more expensive to maintain and forcing investors to sell off risk assets like crypto. Current predictions on Polymarket show an 81% likelihood that no rate hikes will occur in March. This suggests the central bank is waiting for more economic data, with the next potential move being an increase to 1% in April 2026.Bitcoin Price After BOJ Rate Hike
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