Bank of Japan hikes interest rates to
0.75%, highest in 30 years 82 ba 6d 8d ad
Now let me explain how this rate hike will
impact the global market and then will explain
how it impacts crypto markets
For years, Japan was one of the biggest
sources of cheap global liquidity. Investors
could easily borrow Japanese yen at very low
interest rates and then move that money into
different markets like stocks, bonds, gold, and
even crypto. This strategy worked because
borrowing was cheap and risk assets were
giving better returns.
Now things have changed. With Japan hiking
interest rates, borrowing yen has become
expensive. This means fewer investors will
borrow yen, and a lot of existing money will
start moving back. As a result, global liquidity
gets pulled out. When liquidity dries up, most
markets struggle that's why this environmen,
generally bearish for risk assets.
Now it's very easy to understand how this
affects the crypto market.
Crypto depends heavily on liquidity. When
global liquidity reduces, crypto also feels the
pressure. Less money flowing in means weaker
demand, higher volatility, and more downside
risk. Because of this, the crypto market can
remain bearish for the next few days. $ETC
can easily move down and test the $70,000
zone in the coming weeek
This is not a straight signal that Bitcoin will
immediately dump.
I'm simply saying that it can dump toward
$70,000 I'm the upcoming week and this dump
could turn into a very strong buying
opportunity towards the end of December.
From January onwards, markets will recovering
and pumping hard. So we will be taking profits
in mid January &
Stay patient, manage risk properly, and keep
following PandaTraders as we continue to
deliver timely, authentic, and credible crypto
insights with highaccuracy sigrials.
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