🔥IMPORTANT🔥
TODAY #BITCOIN DID NOT PLUNGE FOR THIS REASON
🇯🇵 The Bank of Japan raised the rate to 0.75%, the highest level since 1995. But unlike other times... this time $BTC did not fall.
💥Let’s remember what happened before:
🔻March 2024: End of negative rates ➡️ BTC -23%
🔻July 2024: Surprise increase ➡️ BTC -25%
🔻January 2025: New increase ➡️ BTC -30%
👉But now... Bitcoin remained STRONG and even saw increases. Why?
🔹The increase was already anticipated by the market (98% probability and 50/50 Bloomberg analysts following this issue commented that they would raise the rate)
🔹The yen remained weak, NOT EVEN THE RATE INCREASE WAS ABLE TO STRENGTHEN IT...
🔹This is KEY to prevent the yen carry trade from collapsing (increased cost of borrowing that would force asset sales)
🔹This is because Governor Ueda of the BoJ had a more flexible tone. “We are in no hurry to raise the rate,” he stated.
What did he exactly comment⁉️
🗣"The pace at which we adjust our monetary support will depend on economic, price, and financial developments at that time."
🗣"The pace of future rate increases will depend on the data and economic developments at that time."
🗣"We will make an appropriate decision to not fall behind on inflation and achieve a soft landing towards our inflation target."
🗣"All I can say is that our future policy decision will depend on the information available at that time."
WHAT DOES ALL THIS IMPLY⁉️
📍The “carry trade panic” could be losing strength
📍In fact, now most forecasts expect the next rate increase by the BoJ between April and October
📍And as if that weren't enough, some economists (like Oxford Economics and several at Reuters) expect it to be THE LAST RATE INCREASE by the BoJ