Japan’s 25 bps Rate Hike Shakes Markets: Crypto Slide Deepens as Bitcoin Breaks Below $86K

The Bank of Japan just pulled the trigger. A 25 basis point rate hike—the first in over a decade—rippled through global markets, and crypto felt the tremor first.

Bitcoin's Bull Run Hits a Wall

The flagship cryptocurrency didn't just dip; it broke. The $86,000 support level shattered like glass, extending a slide that's turning bullish whispers into nervous chatter. This isn't a minor correction—it's a direct response to traditional finance tightening its belt.

A Global Liquidity Squeeze

Japan's move signals a broader shift. Central banks are back in the driver's seat, and their favorite tool—higher rates—sucks liquidity out of every risky asset. Crypto, the ultimate risk-on bet, is left checking its pockets. The era of free money is over, replaced by the old-fashioned cost of capital—a concept Wall Street often forgets until it's too late.

Navigating the New Normal

Volatility is the price of admission. This sell-off isn't about crypto's fundamentals; it's a macro tantrum. Smart money sees this as a shakeout, not a collapse. The technology hasn't changed. The adoption curve hasn't flattened. This is a test of conviction against the backdrop of a traditional system playing catch-up with its own policies.

The dip is frightening, but the narrative is intact. When the dust settles, the decentralized ledger won't care about a quarter-point hike. The market just needs to remember that.