$BTC The Bank of Japan keeps interest rates unchanged. The recent market pullback is due to this reason. Previously, the market widely expected the Bank of Japan to raise interest rates, but based on the statements from the Bank of Japan's officials today, there is a possibility of a rate hike in June.

The Japanese yen is actually an important provider of global dollar liquidity. Many funds borrow yen at low interest rates and then exchange them for dollars to invest in higher-yield markets. This is a typical carry trade. But if Japan raises interest rates, these arbitrage positions will be forced to close, and liquidity will be rapidly drained.
Many people may not realize the importance of Japanese interest rates in their daily lives, thinking that global liquidity mainly depends on the Federal Reserve. However, Japan's ultra-low interest rates are actually one of the "water taps" for global funds. Once rates are raised, the tap is turned down, and global markets will follow suit.
On March 19, 2024, the Bank of Japan raised interest rates, causing the US stock and crypto markets to abruptly stop their bull run. On July 31, 2024, the Bank of Japan raised rates again, causing Bitcoin to fall from 62k to 49k. On December 2025, Japan raised rates once more, and Bitcoin dropped from 116k to 80k. Therefore, closely monitor the Bank of Japan's actions in June. #加密市场小幅下跌