Bitcoin price fell below $90,000 at the beginning of the week and has fallen to $87,000 in the past 24 hours.
After recovering, BTC is currently trading around $89,500, but one of the main reasons for today's decline is growing concerns about a possible interest rate hike by the Bank of Japan (BOJ).
Although no official rate hike has been announced yet, investors are following historical trends, which is impacting Bitcoin's price.
The analysis conducted so far reveals that the Bank of Japan's policy rate hikes have repeatedly put downward pressure on Bitcoin prices.
Macro analyst AndrewBTC, using the pseudonym AndrewBTC, said that every time the Bank of Japan raises interest rates in 2024, Bitcoin will fall by more than 20%.
The analyst said, “Since 2024, Bitcoin has experienced a decline of more than 20% every time the Bank of Japan raised interest rates. Specifically, there was a correction of about 23% in March 2024, about 26% in July 2024, and about 31% in January 2025.”
At this point, the analyst warned that if the Bank of Japan resumes interest rate hikes this week, similar downside risks to Bitcoin could resurface and lead to a decline.
In fact, a recent Reuters poll revealed that many economists expect the Bank of Japan to raise interest rates further in December.
One analyst warned investors of further declines in Bitcoin following the Bank of Japan's decision, while another offered a more pessimistic forecast. Cryptocurrency analyst EX also claimed that BTC could fall below $70,000 under these macroeconomic conditions. The analyst said, “If the Bank of Japan continues to raise interest rates, we cannot rule out the possibility that the Bitcoin price could fall below $70,000.''
*This is not investment advice.
