Bitcoin Price Prediction: Japan Puts BTC in the Crosshairs of a Yen Carry Unwind

The Bank of Japan (BOJ) is reportedly leaning toward a 25-basis-point interest rate hike in December, which would raise the benchmark rate to its highest level since 1995. This potential shift directly impacts the yen-funded carry trade, where investors borrow cheap yen to finance leveraged positions in riskier assets like Bitcoin. A rise in Japanese rates reduces the attractiveness of this trade, potentially forcing leveraged macro funds to reduce exposure to BTC and other high-volatility assets, thereby tightening liquidity conditions that have recently supported Bitcoin's rebound. While the immediate impact depends on the pace of tightening and global equity performance, the long-term risk for Bitcoin traders lies in the directional break from decades of cheap global liquidity provided by the BOJ's ultra-low policy.

(Source：CoinDesk)