"Cryptocurrency Market May Face Headwinds from 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.