In brief
- A Bank of Japan rate hike could reverse the lucrative yen “carry trade,” a major source of global liquidity that has historically fueled rallies in risk assets like Bitcoin.
- Analysts are divided, with one warning of a “crypto drag” from tightening liquidity, while another believes conflicting global forces may neutralize the long-term macro impact.
- Despite being anticipated, the hike’s “scary headline” could trigger short-term selling pressure in an already fragile, low-liquidity crypto market, Decrypt was told.
Bitcoin faces a key macroeconomic test this week as the Bank of Japan signals a more definitive pivot away from its long-held ultra-loose monetary policy, a shift that could tighten global liquidity and pressure risk…
Jan 11 2026
