Japan could bring down Bitcoin on Friday; understand the impact of the Bank of Japan.

• What the market is watching until Friday (19): BoJ's decision and tone of the statement;
• Yen movement and signs of carry trade unwinding;
• BTC reaction at $85 (support) and $88–$89 (resistance).

Bitcoin (BTC) was once again the focus of attention this Wednesday (17), with the market looking to Japan on the eve of the Bank of Japan's (BoJ) monetary policy decision, scheduled for the end of the December 18-19 meeting. At the time of publication, BTC was trading near US$ 87.011after varying between US$ 86.251 e US$ 88.063 in day.

On social media, the account @NoLimitGains highlighted The argument that a potential interest rate hike could reduce global liquidity and increase risk aversion, putting pressure on assets such as cryptocurrencies. This interpretation gained traction because the Bank of Japan (BoJ) is widely followed by international investors due to the weight of the Japanese economy and the role of the yen in leverage strategies.

In recent days, analysts and international media outlets have begun to suggest that the Bank of Japan (BoJ) may lower the short-term interest rate to... 0,75%.From 0,5%.This would be the highest level in decades. The central bank's own agenda confirms the dates of the meeting, reinforcing expectations of volatility surrounding the announcement.

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The central point is the impact on what is called carry trade of yenFor many years, investors borrowed yen at low costs to invest in assets with higher returns. If the yen strengthens with higher interest rates, some of these positions may be unwound, generating a chain reaction of sell-offs in different markets.

Bitcoin Analysis

In the graph, the commentator Ted He stated that BTC has been holding the zone of US$ 85.000 as support. For him, losing that level would increase the chance of revisiting the November lows, while a recovery from the range of US$88.000–US$89.000 This would open up space for an attempt to increase the rate of increase. US$ 94.000.

$ BTC has been holding above its $85,000 support zone so far.

Losing this zone means Bitcoin will most likely revisit the November lows.

And if BTC is able to reclaim the $88,000-$89,000 zone, a rally towards the $94,000 zone could happen.

— Ted