Bitcoin sell-off toward $60K may resume as Japan hikes interest rates
Bitcoin slipped after the Bank of Japan raised its short-term policy rate by 25 bps to 1.0%, the highest level since 1995, reviving downside risk for BTC after its Iran-truce rally. BTC fell about 2.5% from a local high near $67,250 but still held June gains. Historical reactions to recent BoJ hikes have been bearish: BTC averaged a 5.74% drop in the 30 days after the last four hikes, including declines of 5.59%, 10.89%, and 14.77% after the March 2024, July 2024, and January 2025 moves. Applying that average to current prices points toward roughly $62,700, near a $59,000–$62,000 demand zone; larger repeats could send BTC to about $59,200 or $56,700. The broader concern is that BoJ tightening can weaken the yen-funded carry trade, reduce global liquidity, and pressure risk assets, especially when rate hikes come late in the cycle.
