There's a phenomenon I increasingly believe in — every time Japan raises interest rates, BTC begins to decline.

Look at the data from the past two years and you'll understand: in March last year, an interest rate hike caused BTC to drop by 23%. In July, another rate hike, and this time the decline was even steeper, at -26%. In January of this year, the pattern repeated itself, with a drop of 31%.

This is not a coincidence. As the world's third-largest economy, Japan's monetary policy adjustments trigger a reallocation of international capital flows. When expectations of yen appreciation increase, arbitrage trades are closed, and global liquidity begins to tighten. Bitcoin, as a risk asset, is the first to be affected.

The key point — on December 19, the Bank of Japan will once again raise interest rates by 25 basis points. You should now know what will happen.