In accordance with The Crypto Basic, the Bank of Japan (BOJ) is expected to raise interest rates for the first time in nearly a year, with economists predicting a 25-basis-point increase to 0.75% at its December 18-19 meeting. This move aims to address inflation, which has remained above the 2% target for 43 consecutive months, and the weakening yen. Bitcoin analysts are monitoring the potential impact, noting that the last BOJ rate hike in January 2025 led to a 29% drop in Bitcoin’s price over four months. Analysts warn that a similar tightening could trigger renewed selling pressure, especially if the Federal Reserve also cuts rates, narrowing the U.S.-Japan rate gap and affecting global liquidity.
Japan to Hike Interest Rates for First Time in 11 Months, Bitcoin Reacts
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Japan to Hike Interest Rates for First Time in 11 Months, Bitcoin Reacts Amid **Countering the Financing of Terrorism** Measures
The Bank of Japan (BOJ) is expected to raise interest rates by 25 basis points to 0.75% at its December 18-19 meeting, ending a 11-month pause. The move targets inflation above 2% for 43 months and a weak yen. Bitcoin analysts cite past rate hikes triggering sharp price declines. A similar tightening could renew selling pressure, especially if the Fed cuts rates, narrowing the U.S.-Japan gap. Market observers also track how this could affect compliance with **EU Markets in Crypto-Assets Regulation** standards.
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