With the Bank of Japan set to raise interest rates to 0.75%, Bitcoin liquidity faces a test

[BitPush] The Bank of Japan is very likely to raise interest rates to 0.75% at this meeting—a level not seen since 1995.

What does this mean for the crypto space? Once the yen’s interest rate rises, the appeal of arbitrage trading capital will plummet. More importantly, markets that are highly leveraged and extremely sensitive to liquidity—with Bitcoin at the forefront—may be forced to adjust their positions. Recently, BTC’s rebound from the lows has been largely supported by liquidity. But once the yen strengthens, it’s traditionally accompanied by macro investment portfolios reducing risk, tightening overall market liquidity conditions. With this chain reaction, whether Bitcoin can hold its current position is really uncertain.