ChainThink report, December 19: According to market data, since 2024, the Bank of Japan has implemented three interest rate hikes, occurring in March 2024, July 2024, and January of this year. Over the past decades, global capital markets have not been solely driven by U.S. liquidity—Japan has contributed a substantial portion.

Due to Japan's prolonged implementation of zero or even negative interest rate policy (NIRP) combined with an exceptionally accommodative monetary environment, it has effectively functioned as a low-cost liquidity ATM for the global financial system. Consequently, Japanese rate hikes exert a significant tightening effect on global liquidity. Bitcoin’s price trend following each of these three rate hikes has been downward, with declines of 23.06%, 26.61%, and 31.89%, respectively.

However, the latest round of Japanese rate hikes was largely anticipated, with market participants having already priced in the expectation. Whether this hike will trigger a repeat of Bitcoin’s previous downturn remains uncertain.