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The Bank of Japan has raised interest rates three times before, and each time Bitcoin has experienced a drop of over 20%.

2025.12.19 11:31:33

**December 19th** Market data shows the Bank of Japan (BOJ) has hiked interest rates three times since 2024: March 2024, July 2024, and January of this year. For decades, a large share of global capital market liquidity has stemmed from Japan—not just the U.S. Japan’s long-running zero or negative interest rate policy (NIRP), paired with an ultra-loose monetary environment, has effectively acted as a low-cost funding ATM for the global financial system. As a result, BOJ rate hikes have delivered a significant tightening effect on global liquidity. Bitcoin has fallen in price following each of the three hikes, with declines of 23.06%, 26.61%, and 31.89% respectively. However, the latest BOJ rate hike was well anticipated, and the market has already priced it in. Whether this round will trigger a similar Bitcoin price drop as seen previously remains uncertain.
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