Bitcoin’s price traded below $90,000 at the start of the new week, falling as low as $87,000 in the last 24 hours.
After recovering, BTC is currently trading around $89,500, but one of the main reasons for today’s decline is the growing concerns about a possible interest rate hike by the Bank of Japan (BoJ).
Although no official interest rate hike has been announced yet, investors are acting according to past trends, which is affecting the price of Bitcoin.
An analysis conducted at this point revealed that the Bank of Japan’s policy interest rate hikes have repeatedly put downward pressure on Bitcoin prices.
Macro analyst AndrewBTC, using the pseudonym AndrewBTC, stated that Bitcoin will fall by over 20% with every interest rate hike by the Bank of Japan in 2024.
The analyst stated, “Since 2024, every time the Bank of Japan has raised interest rates, Bitcoin has experienced pullbacks of over 20%. Specifically, there were corrections of approximately 23% in March 2024, approximately 26% in July 2024, and approximately 31% in January 2025.”
At this point, the analyst warned that if the BOJ raises interest rates again this week, similar downside risks could re-emerge for Bitcoin, leading to a decline.
Indeed, a recent Reuters poll revealed that many economists expect the Bank of Japan to raise interest rates further in December.
While one analyst warned investors about further declines in Bitcoin following the BOJ decision, another analyst offered a more pessimistic prediction. Crypto analyst EX also claimed that under these macroeconomic conditions, BTC could fall below $70,000. The analyst stated, “If the Bank of Japan continues with interest rate hikes, we cannot rule out the possibility of the Bitcoin price falling below $70,000.”
*This is not investment advice.
Source: https://en.bitcoinsistemi.com/analyst-warns-bitcoin-could-experience-a-drop-of-over-20-in-the-short-term-the-reason-is-this-country/
