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Bank of Japan May Raise Interest Rates to Highest Level Since 1995

According to Odaily, the Bank of Japan is considering a 25 basis point interest rate hike to 0.75% during its meeting on December 19, marking the highest rate since 1995. Following this news, the Japanese yen strengthened from around 155 to approximately 154.56. A stronger yen often leads to macroeconomic deleveraging, potentially triggering the unwinding of yen-financed carry trades. This could tighten liquidity that has supported Bitcoin's rebound from its November lows. If financing costs continue to rise, leveraged funds may reduce exposure to high-volatility assets like Bitcoin.
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