The impact of Japan's previous interest rate hikes on Bitcoin. Since the normalization of Bank of Japan in 2024, every interest rate hike has triggered the liquidation of yen arbitrage trades, causing global liquidity to shrink and high-risk assets to bear the brunt - Bitcoin's short-term sharp decline! Core: Borrowing Japanese yen at low interest rates to invest in big cakes, rising costs and yen appreciation after interest rate hikes, forcing a chain reaction of forced selling. Taking history as a mirror: 2024.3: End negative interest rates → 0.1%, BTC drops 23-27% July 2024: Rising to 0.25%, BTC drops from 65000 to 50000, a decrease of 26-30% 2025.1: Rising to 0.5%, BTC undergoes deep adjustment, falling 30-31% On May 12, 2025 (with high expectations of+25bp to 0.75% on the 18th and 19th), the market has already reacted in advance and is likely to drop another 20-30%, possibly exceeding $70000! The current BTC has fallen from its high point (around 80000-90000 range) Short term pain, medium to long term? Raising interest rates strengthens BTC's "digital gold" attribute, but liquidity risk should not be ignored. Bitcoin, Japan, Bank of Japan, and Crypto raise interest rates