Bank of Japan Eyes First Rate Hike to 0.75%, Highest Since 1995 — Crypto Markets Hit by $637M Liquidations - Coinedict

The Bank of Japan is preparing to lift its policy rate to 0.75% at the December 18–19 meeting — the highest level in 30 years — as global markets brace for one of the most consequential tightening moves from the world’s last ultra-dovish central bank.

According to Nikkei, Governor Kazuo Ueda is expected to secure majority support within the nine-member Policy Board for a 25 bps increase from the current 0.5%, marking the first rate hike since January 2025.

The decision comes as Japan’s 10-year JGB yield climbs to 1.94%, its highest since 2007, while Prime Minister Sanae Takaichi signals full support for normalizing monetary policy after decades of accommodative measures.

Crypto Market Reacts: Bitcoin Slips Below $85K, Massive Leveraged Washout

The BOJ’s tightening stance is already sending shockwaves across high-risk assets.
Bitcoin plunged below $85,000, triggering a severe deleveraging wave:

• $637M liquidated market-wide
• $251.69M in BTC long positions wiped
• $111.31M in ETH longs liquidated

The move dragged Bitcoin back to the $86K region and pulled the broader Crypto Fear & Greed Index into extreme fear, dipping near 20 after briefly touching 10 during the panic session.

Analysts warn that the BOJ pivot is directly pressuring crypto markets because it disrupts yen carry trades — a major liquidity source for global leveraged positions.

“A stronger yen raises the risk of unwinding carry trades, which can temporarily weigh on crypto valuations,”
— Ignacio Aguirre, Bitget CMO

The turmoil also spilled into crypto-exposed equities:

• MicroStrategy suffered steep declines
• Coinbase and Robinhood fell mid-single digits

Meanwhile, U.S. Treasury yields also reacted, with the 10-year rising above 4.08% as Japanese investors — major holders of U.S. debt — reposition amid shifting domestic rates.