{"id":8047,"date":"2025-01-16T14:17:01","date_gmt":"2025-01-16T14:17:01","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=8047"},"modified":"2025-01-16T14:17:01","modified_gmt":"2025-01-16T14:17:01","slug":"crypto-bulls-brace-for-bank-of-japans-rate-hike-that-could-derail-momentum","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=8047","title":{"rendered":"Crypto Bulls Brace for Bank of Japan’s Rate Hike That Could Derail Momentum"},"content":{"rendered":"
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Most investors have their eyes set on President Trump’s inauguration on Jan. 20, which has the potential to be a key catalyst for bitcoin (BTC)<\/a> and cryptocurrency prices.<\/p>\n<\/p>\n

However, a few days later, there is a potential rate hike on the cards from the Bank of Japan (BoJ). According to a Bloomberg chart shared by analyst Michael Kramer on X<\/a>, the market is currently factoring in a 90% chance of a rate hike on Jan. 24.<\/p>\n<\/p>\n

Previously, the BoJ rate hike caused havoc on both the traditional and digital assets market . This was a key catalyst for the Yen carry trade unwind<\/a> at the start of August, which sent bitcoin tumbling to $49,000. Traders are likely bracing for another selloff this time around.<\/p>\n<\/p>\n

Since 2016, the BoJ has maintained negative interest rates; however, in 2024, they increased interest rates twice, from -0.1% to 0.25%. The implied rate going into the meeting is 0.45%; however, this could drastically change as Japan has an inflation report just the day before, on Jan. 23.<\/p>\n<\/p>\n

Headline inflation year-over-year is at 2.9%, the highest since August. A hotter-than-expected inflation print could create fears within the market, and another iteration of the Yen carry trade unwind could be on course.<\/p>\n<\/p>\n

Even with the remarkable strength of the DXY index, which is currently above 109, the highest level since November 2022, it has jumped from 100 from the September low.<\/p>\n<\/p>\n

The DXY index<\/a> is following a similar trajectory to Donald Trump\u2019s first presidential term, which saw a rally in the DXY leading into his inauguration and then fell considerably, giving risk assets a much-needed boost. The DXY index measures the value of the U.S. dollar against a basket of major foreign currencies.<\/p>\n<\/p>\n

The Japanese Yen is at its strongest level against the dollar since Dec. 16, at 156.<\/p>\n

Read more: Bank of Japan Governor Hints at More Rate Hikes; BTC Drops 0.4%<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Most investors have their eyes set on President Trump’s inauguration on Jan. 20, which has the potential to be a key catalyst for bitcoin (BTC) and cryptocurrency prices. However, a few days later, there is a potential rate hike on the cards from the Bank of Japan (BoJ). According to a Bloomberg chart shared by […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-8047","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/8047","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=8047"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/8047\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8047"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8047"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8047"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}