The speech of the Governor of the Bank of Japan has strengthened interest rate hike expectations
This led to a sharp drop on the first day of December, as it seems that the rise in prices in Japan 📈 is too fast, necessitating an interest rate hike to cool down
In simple terms, Japan, as the world's third-largest economy, has previously maintained a negative interest rate, and commercial banks under the central bank have been lending money to businesses and individuals at very low rates. However, now the central bank says it will raise interest rates, which will increase borrowing costs for businesses and individuals.
The cost of borrowing yen has increased, leading global investors to sell off high-risk assets to repay their loans, causing a panic sell-off in cryptocurrencies.
A few days ago, the regulatory meetings in China had little impact, but today the Bank of Japan's announcement caused a sharp drop, indicating that the influence of the Bank of Japan on the financial market (at least on the crypto market) has surpassed that of China.
