The Bank of Japan has previously raised interest rates 3 times, each time Bitcoin has recorded a drop of over 20%.

BlockBeats News, December 19th, according to market information, since 2024, the Bank of Japan has implemented three interest rate hikes, in March and July of 24, and in January of this year.

Due to Japan's long-standing zero or even negative interest rate policy (NIRP), combined with an extremely loose monetary environment, over the past few decades, global liquidity has not solely come from the United States; a large part has actually come from Japan, with Japan essentially acting as a low-cost fund ATM for the global financial system. Therefore, Japan's interest rate hikes have a significant tightening effect on global liquidity, and Bitcoin has experienced price declines following each of the three interest rate hikes mentioned above, with price drops of 23.06%, 26.61%, and 31.89%, respectively.

However, expectations for the latest round of interest rate hikes in Japan are relatively well-priced in, and the market has already responded in advance. Whether this round of interest rate hikes will lead to a repeat of Bitcoin's previous declines remains to be seen.