Bitcoin consolidates following a pullback from $107,465, facing potential further decline towards $70,000 amid expectations of a Bank of Japan rate hike on December 19, 2025.
A BoJ rate increase may trigger yen carry trade reversals, impacting global liquidity and pressuring Bitcoin, already facing bearish macro signals, to continue its downward trajectory.
Bitcoin Threatens Decline to $70,000 Amid BoJ Concerns
Bitcoin is consolidating following a retreat from $107,465, as macro analysts highlight a potential decrease to $70,000. This movement is attributed to the anticipated Bank of Japan rate hike aimed at unwinding yen carry trades.
Key analysts such as AndrewBTC and EX are emphasizing potential macroeconomic repercussions on Bitcoin. The expected actions from the Bank of Japan could lead to reduced global liquidity, affecting risk assets comprehensively.
BTC Could Face 20-30% Correction Post-BoJ Action
Market focus remains on how BTC might respond to these financial shifts. Past BoJ rate hikes have often led to significant corrections in Bitcoin, amplifying concerns within the crypto community. AndrewBTC noted, “Historical BoJ rate hikes have led to Bitcoin drops of 23%, 26%, and 31%.”
The projected rate increase may result in a 20-30% correction, according to historical data. Analysts underscore the potential for diminished liquidity and a stronger yen impacting global cryptocurrency markets negatively.
Bitcoin’s Historical Declines Aided by BoJ Rate Adjustments
Historical precedence shows Bitcoin experiencing notable declines of 23-31% post-BoJ rate hikes. Analysts correlate these events to strengthened yen positions and lending cost escalations impacting market liquidity.
Experts speculate that the upcoming policy change by the Bank of Japan will likely exacerbate similar trends. Insights from Kanalcoin highlight the 2025 predictions, reinforcing worries over Bitcoin’s price trajectory.
| Disclaimer: This website provides information only and is not financial advice. Cryptocurrency investments are risky. We do not guarantee accuracy and are not liable for losses. Conduct your own research before investing. |
