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Japan's Expected Rate Hike May Suppress Liquidity of Risk Assets Such as Bitcoin
Summary: According to reports from Coindesk, the Bank of Japan is expected to raise interest rates to 0.75% at its meeting, the highest level since 1995, which will impact global markets including cryptocurrencies. An increase in Japanese rates will reduce the attractiveness of the trade and may force position adjustments in the most leveraged and liquidity-sensitive ...
According to reports from Coindesk, the Bank of Japan is expected to raise interest rates to 0.75% at its meeting, the highest level since 1995, which will impact global markets including cryptocurrencies.
An increase in Japanese rates will reduce the attractiveness of the trade and may force position adjustments in the most leveraged and liquidity-sensitive markets, including Bitcoin. A stronger yen typically accompanies a decrease in macro portfolio risks, which could tighten liquidity conditions, a dynamic that has recently helped Bitcoin rebound from lows.
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