Analyst: If the Bank of Japan hikes interest rates as expected on December 19, BTC may retrace to $70,000

Deep Tide TechFlow News, December 14 — According to Cointelegraph, several macro analysts stated that if the Bank of Japan (BoJ) raises interest rates as expected on December 19, Bitcoin may continue to retrace to the $70,000 level.

Analyst AndrewBTC data shows that since 2024, every rate hike by the Bank of Japan has been accompanied by a Bitcoin price correction of over 20%, including a 23% decline in March 2024, a 26% decline in July, and a 31% decline in January 2025. A Reuters poll indicates that most economists forecast another rate hike at the December policy meeting.

Analysts point out that rate hikes by the Bank of Japan typically strengthen the yen, increase borrowing costs, and force traders to close “yen arbitrage trades,” thereby reducing global market liquidity. In a liquidity-tightening environment, investors tend to reduce leverage and risk exposure, putting pressure on risk assets like Bitcoin. Technically, the Bitcoin daily chart shows a classic bear flag pattern. If the lower trendline is broken, the target range is between $70,000 and $72,500.