5-Day Countdown: Japan's Interest Rate Decision Approaches (Attached Image: Timeline of Yen Rate Hikes from 2024-25 Compared to Bitcoin Prices - Exclusive 'Secret Guide')

High Energy Alert! In 5 days, the Bank of Japan will announce its interest rate decision!

The Bank of Japan (BoJ) Monetary Policy Meeting (MPM) is scheduled for April 30 to May 1, 2025, with the decision usually announced the next day (May 1) between 11:45 AM and 1:00 PM Japan Standard Time (JST).

The low interest rate policy that the Bank of Japan has adhered to for many years has effectively made it a 'shadow bank' of the Federal Reserve. As shown in Figure 1, the current dollar-yen interest rate differential remains a significant temptation for carry trade, and yen interest rate policies will trigger sensitive nerves in the global financial markets.

Dollar-Yen Interest Rate Differential

If the yen continues to raise interest rates, it will further amplify the negative effects of the Federal Reserve's QT, thereby forcing the Fed's QE and rate cuts.

As depicted (the 🍌 in the figure indicates that this interest rate decision is a rate hike), since last year, after each yen rate hike (usually the following month), the cryptocurrency price has experienced a significant pullback. The specific pattern is as follows: before the monetary policy meeting, the cryptocurrency price drops; after the announcement, if the interest rate decision is to maintain the rate, the cryptocurrency price rises; conversely, if the price drops, this cycle repeats itself.

Timeline of Yen Rate Hikes from 2024-25 Compared to Bitcoin Prices