According to a Reuters survey, two-thirds of economists predict that the Bank of Japan will raise interest rates to 1% before the end of June.

What does 1% mean?

Japan's benchmark interest rate has risen from negative rates all the way to 1%, meaning the yen is no longer "free money." Once the largest source of funding for global carry trades faces higher costs, positions worth hundreds of billions of dollars will be liquidated.

How exactly does this affect the crypto market?

Low interest rates on the yen → funds borrow yen to buy BTC → BTC rises

Interest rate hikes on the yen → borrowing costs increase → liquidate and sell BTC → BTC falls

This is not speculation; it’s a historical pattern. When the Bank of Japan adjusted its YCC in 2022, risk assets worldwide experienced a flood of blood.

So the current question is—

The market has almost "priced in" a rate hike in Japan, but the timing is uncertain.

Will it happen this month or in June? The decision depends on whether Iran acts.

If Japan actually raises to 1% before June, global liquidity will tighten, and the impact won't be limited to BTC—US stocks, the Nikkei, and all assets supported by yen interest rate differentials will need to be re-priced.

1% may not sound like much, but for an economy that has maintained zero or negative interest rates for years, taking this step will cause global capital markets to sway. #WCTC交易赛瓜分800万USDT $OPN