Breaking News: Bank of Japan Set to Raise Interest Rates to 75bps - A Tectonic Shift for Global Finance

Japan's central bank pulls the trigger on a historic pivot.

The End of an Era

Forget negative rates. The Bank of Japan is finally joining the global tightening club, signaling a definitive break from its decades-long ultra-loose monetary policy. Markets are bracing for the aftershocks.

Why This Move Rocks the Boat

A 75 basis point hike isn't just a number—it's a statement. It rips up the old playbook and forces a global recalibration. Capital flows are about to get chaotic as the world's last major holdout on cheap money steps away. Savers might cheer, but borrowers are scrambling.

The Domino Effect

Watch the yen. Watch Japanese government bonds. Then watch everything else. This recalibrates risk appetites and asset valuations from Tokyo to Toronto. It's a fresh headache for global debt markets already nursing a hangover from other central banks' moves.

A New World Order

The move shatters the long-held assumption that Japan would forever be the world's financier of cheap capital. That safety net is gone. Investors now operate in a world where every major central bank is fighting inflation—or at least pretending to. (Cue the cynical jab: Traders will now have one less excuse for their bad leveraged bets.)

The global liquidity tide is officially, unequivocally, going out.

With just two days to go, the Bank of Japan (BOJ) is set to deliver one of its biggest interest rate decisions, which could strongly impact the crypto market. 

This time, the MOVE is even more aggressive. Japan is preparing a 75 basis point interest rate hike, its highest level in over 30 years.

History shows that whenever the BOJ raises rates, the Bitcoin price has fallen by 25–30%.

Japan to Hike Interest Rate to 75 Bps

For decades, Japan kept interest rates very low to support growth and fight deflation. However, the situation has changed. Inflation is now above the Bank of Japan’s (BOJ) 2% target, while economic growth remains weak.

On December 19, the BOJ will hold a key policy meeting and is widely expected to raise interest rates. Markets, including prediction platforms like Polymarket, are pricing in a 25 basis point hike with nearly 98% probability.

That said, some experts believe the move could be much stronger. Recent discussions suggest Japanese officials are open to a more aggressive step, with rates possibly rising by up to 75 basis points. If this happens, the policy rate WOULD reach 0.75%, the highest level in over 30 years.

BREAKING

BANK OF JAPAN CONFIRMS THEY WILL HIKE INTEREST RATES TO 75 BPS ON DECEMBER 19.

THIS WOULD BE THE HIGHEST RATE LEVEL IN OVER 30 YEARS.

BEARISH NEWS FOR FINANCIAL MARKETS. pic.twitter.com/kD2iv7ssYe

Recent business surveys showed improved confidence among large Japanese firms, supporting expectations of the rate hike.

Why the BOJ Is Tightening Policy

The Bank of Japan is tightening policy as inflation stays close to 3%, even after keeping rates at 0.5% in October 2025. At the same time, Japanese bond yields have jumped to multi-decade highs, with the 10-year yield NEAR levels last seen in the late 2000s.

Because Japan is a major global investor and holds over $1.1 trillion in the U.S. Treasuries, higher domestic rates could encourage Japanese funds to move money back home. 

Alongside rate hikes, the BOJ plans to sell nearly $550 billion in ETF holdings and scale back stimulus, marking a clear exit from decades of ultra-easy monetary policy.

What Will Happen to Bitcoin, IF BOJ raises the Rate By 75 BPS

If the Bank of Japan hikes interest rates by 75 basis points, Bitcoin is likely to face strong selling pressure. History shows a clear connection between BOJ tightening and bitcoin price drops.

• March 2024 → Bitcoin fell about 20% within six weeks
• July 2024 → Bitcoin dropped 26% in one week
• January 2025 → Bitcoin slid more than 30% over about a month 

Many crypto analysts now warn that Bitcoin’s recent selling could worsen after the December rate hike. 

Bitcoin, which is currently struggling around $90,000, may face pressure that pushes it below $70,000 if global liquidity contracts further.