The Bank of Japan's previous three interest rate hikes have all resulted in Bitcoin experiencing a decline of over 20%.

BlockBeats News, December 19 — According to market information, since 2024, the Bank of Japan has implemented three interest rate hikes, in March, July, and January of this year. Over the past few decades, global capital market liquidity has not been entirely driven by the United States; a significant portion actually comes from Japan. Due to Japan’s long-standing zero interest rate policy and even negative interest rate policy (NIRP), combined with an extremely loose monetary environment, Japan has effectively served as a global financial system’s cheap funding ATM. Therefore, rate hikes in Japan have a substantial tightening effect on global liquidity. The price of Bitcoin has declined following each of these three rate hikes, with decreases of 23.06%, 26.61%, and 31.89%, respectively. However, prior expectations for the latest round of Japanese rate hikes were quite well-formed, and the market had already responded in advance. Whether this round of rate hikes will cause Bitcoin to repeat its previous declines remains uncertain.