Summary
- It was reported that the cryptocurrency market might face headwinds due to a Japanese interest rate hike.
- CoinDesk projected that Bitcoin faced a massive sell-off due to the unwinding of yen carry trades.
- Wall Street analysts indicated a 90% chance of a Japanese interest rate hike.
The cryptocurrency market, which found bullish momentum ahead of President Trump's inauguration, may face headwinds due to a Japanese interest rate hike.
On the 16th (local time), cryptocurrency-focused media CoinDesk reported, "Bitcoin faced a massive sell-off last August due to the unwinding of yen carry trades. Traders will be bracing for sell-offs due to the Japanese interest rate hike."
The Bank of Japan has maintained negative interest rates since 2016, but raised rates twice in 2024 from -0.1% to 0.25%. According to Bloomberg data, Wall Street analysts see a 90% chance of a Japanese interest rate hike on January 24.
YM Lee
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