Japan's Interest Rate Hikes Impact Global Liquidity and Bitcoin Prices

According to BlockBeats, since 2024, the Bank of Japan has implemented three interest rate hikes in March, July, and January of this year. Historically, a significant portion of global capital market liquidity has originated from Japan, not solely from the United States. Japan's long-standing zero or negative interest rate policy, combined with an extremely loose monetary environment, has effectively made it a source of cheap funds for the global financial system. Consequently, Japan's interest rate hikes have a substantial tightening effect on global liquidity. Following each of these three rate hikes, Bitcoin prices experienced declines of 23.06%, 26.61%, and 31.89%, respectively. However, the latest anticipated rate hike from Japan has been well-forecasted, and the market has already responded in advance. It remains uncertain whether this round of rate hikes will lead to a similar decline in Bitcoin prices as seen previously.