The Bitcoin market has continued to consolidate within the $90,000 price zone over the last day, reflecting a minor 0.04% gain within this period. Notably, the The Bitcoin market has continued to consolidate within the $90,000 price zone over the last day, reflecting a minor 0.04% gain within this period. Notably, the

Bitcoin Investors Brace For BOJ Rate Hike As Market Sell-Off Continues — Details

2025/12/14 14:00

The Bitcoin market has continued to consolidate within the $90,000 price zone over the last day, reflecting a minor 0.04% gain within this period. Notably, the premier cryptocurrency has witnessed a steady rally in recent weeks, forming the early phases of an ascending channel. To protect this potential uptrend, recent on-chain data shows that investors are moving to initiate a downside and price in the market effect of an anticipated negative catalyst.

Bitcoin Sees High Inflows, Negative Funding Rates As Investors Guard Against Rate Hike

In a QuickTake post on CryptoQuant, the crypto analysis page XWIN Research Japan discusses how potential Japan economic developments are presently impacting the Bitcoin market. Notably, analysts and economists expect the Bank of Japan to announce a 25 bps rate hike at its next policy meeting between December 18-19, as the Asian nation moves to end an ultra-loose monetary regime.

Interest rate hikes are generally interpreted as bearish catalysts as they force investors to move out of risky assets due to less available capital, thereby inducing a price decline. According to XWIN Research Japan, Bitcoin investors may currently be attempting to absorb the resulting price pressure, potentially muting the immediate impact of the primary catalyst itself.

Bitcoin

This theory is based on multiple developments, such as exchange netflows. The analysts at XWIN report that exchange inflows are rising to mirror similar levels seen during previous BOJ hikes. Investors are presently exiting exchanges and minimizing their spot exposure to reduce the market impact of the expected decision.  Meanwhile, the funding rates are also declining, another event seen during past rate hikes. Notably, investors are proactively losing their leverage in what is a pre-event caution movement.

What Next For Bitcoin? 

At press time, Bitcoin tie valued at $90,190, reflecting a market gain of 0.77% in the past week. With the Bank of Japan’s hawkish pivot largely priced in, XWIN Research says that market focus has shifted away from the rate hike itself toward post-announcement yen dynamics.

Going forward, the analysts explain that Bitcoin’s near-term direction may hinge on whether the yen continues to strengthen or if markets respond with a “sell the rumor, buy the fact” reversal, signaling that the adjustment phase is already unfolding. With a market cap of $1.67 trillion, Bitcoin continues to rank as the largest cryptocurrency with a current market dominance of 58.2%

Bitcoin
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