2025-12-19 09:45:03

$BTC The Bank of Japan's rate hike has strengthened risk-on sentiment.

Brief reasons (:

➠ The Bank of Japan raised the interest rate to a 30-year high of )0.75%(.

➠ The main thing – the yen did NOT strengthen. Everyone was worried about carry unwind )massive unwinding of yen-denominated loans → sell-off of risk assets(. But after the rate decision, the yen fell, and there was no financial stress.

➠ The rate hike was already priced into the market. When an expected event occurs without shock – investors unwind hedges and reintroduce risk assets into their portfolios.

➠ "Dovish tightening": The Bank of Japan emphasized that the real rate is still low, and the increase will be gradual. Global liquidity is not "shrinking" abruptly.

➠ The US added fuel: US inflation is below expectations )CPI( → chances of a Fed rate cut increased → the dollar weakens, appetite for risk grows.

➠ The bottom line: the market was not afraid of the rate itself, but of chaos with the yen and funding. That did not happen → risk-on.

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