[Analysis suggests the upcoming yen rate hike may not trigger risk-off sentiment in the crypto market]
The last rate hike by the Bank of Japan led to a surge in the yen and a sharp increase in market risk-off sentiment, causing Bitcoin's price to drop from around $65,000 to $50,000. However, the upcoming rate hike may not trigger risk-off sentiment in the crypto market, as speculators currently hold net long positions in the yen, and Japanese government bond yields have been climbing steadily this year, reaching multi-decade highs. The official rate hike reflects that interest rates are catching up with market trends. Additionally, this week, the Federal Reserve introduced liquidity measures while lowering interest rates by 25 basis points to their lowest level in three years. These combined factors suggest a lower likelihood of significant yen carry trade unwinding or year-end risk-aversion sentiment.