Japan's expected interest rate hike may curb the liquidity of risk assets such as bitcoin

ChainCatcher news, according to Coindesk, the Bank of Japan is expected to raise interest rates to 0.75% at its meeting, which would be the highest level since 1995 and will impact global markets, including cryptocurrencies.

Rising Japanese interest rates will reduce the attractiveness of this trade and may force position adjustments in the most leveraged and liquidity-sensitive markets, including bitcoin. A stronger yen is usually accompanied by a reduction in macro portfolio risk, and this dynamic may tighten liquidity conditions, which have recently helped bitcoin rebound from its lows.