But here’s the twist… this dip might be the FINAL bottom before the 2026 rally. 👀🔥
🇯🇵 Why Japan Could Trigger the Next Market Drop
Japan is expected to raise interest rates again around December 18–19 ⏰
This matters a lot for global markets especially crypto.
For years, Japan kept interest rates extremely low.
That made borrowing yen cheap, so investors borrowed in yen and poured that money into:
📈 Stocks
🪙 Crypto
🏦 Risk assets
This strategy is called the Yen Carry Trade.
Now that Japan is hiking rates, borrowing yen is getting expensive 💸
When costs rise, investors are forced to pay back loans — and to do that, they sell assets.
Result? 👇
Selling pressure hits global markets
Crypto feels it fast
📊 History already showed us this pattern:
July 2024 rate hike ➝ Bitcoin dropped ~26% in a week
January 2025 rate hike ➝ Bitcoin fell ~25% over the following weeks
Every time Japan raised rates, markets dropped shortly after.
⚠️ What Could Happen If Rates Rise Again?
If Japan hikes rates in December, we could see:
📉 Sharp drops in stocks
🔻 Fast crypto sell-offs
🌪️ Extreme volatility
💥 Forced liquidations
These moves usually happen fast, not slowly.
But that’s only the short-term story.
🔄 The Bigger Picture Most People Miss
Japan’s economy is already struggling:
Latest GDP: -0.6% (worse than expected)
Because of this, Japan can’t keep tightening for long.
On top of that, the government announced a ¥17 trillion stimulus package 💴
This includes bond buying, which:
Adds liquidity
Helps stabilize markets
So after a panic driven sell-off:
Weak hands are wiped out
Selling pressure fades
A market base starts to form
🌍 Zooming Out: Global Liquidity Is
Returning
The US, China, and Canada are all moving toward easier policy 🌐
Over time, this increases liquidity across global markets.
That’s why this moment matters.
💡 A Japan rate hike may cause short term pain,
but after the reset, conditions can improve fast.
If liquidity keeps flowing back in,
🚀 2026 could still be a very strong year for crypto and risk assets.
Stay alert. Manage risk.
Sometimes the scariest dips create the biggest opportunities. 🔥📊
