🇯🇵 Japan Raises Interest Rates – Why Bitcoin Often "Dumps" Hard
Every time BOJ ( the Bank of Japan ) raises interest rates → BTC usually drops 20-30%+.
Recent history:
- 03/2024: -23%
- 07/2024: -26%
- 01/2025: -31%
Not a coincidence – but **capital flow**!
🧠 **CORE: Yen Carry Trade**
Japan has kept ultra-low ( even negative ) interest rates for over 30 years → Yen becomes the "cheapest money" in the world.
Major funds:
- Borrow Yen at low interest
- Convert to USD
- Invest in risky assets: US stocks, Crypto (BTC, ETH...)
When BOJ raises interest rates:
- Yen borrowing becomes more expensiv
View Original