Bitcoin Retreats to $85,000 Level Amid Concerns Over Japan Rate Hike [Crypto Briefing]

[Financial News] On the 16th, Bitcoin (BTC) fell to the $85,000 level. The decline is attributed to heightened concerns over a potential interest rate hike by the Bank of Japan (BOJ), which has dampened investor sentiment toward risk assets.
According to global crypto data platform CoinMarketCap, BTC was trading at around $85,000 as of 10:30 a.m., down 3.17% over the previous 24 hours. Over the past week, BTC has declined by 4.81%.
In the Korean won market, BTC is trading at approximately 127 million won. According to the global crypto price comparison platform Cryprice, the Korea premium stands at 1.20%.
The crypto market is closely watching the BOJ’s monetary policy direction. The BOJ is scheduled to hold a monetary policy meeting on the 19th, and the market largely expects the benchmark interest rate to be raised from 0.5% to 0.75%.
A rate hike in Japan could trigger what is known as the 'yen carry trade' unwind. The yen carry trade is a strategy where investors borrow yen at ultra-low interest rates and invest in higher-yielding assets abroad to profit from the interest rate differential. If Japanese interest rates rise, investors are likely to sell off their existing investments en masse.
Crypto-focused media outlet Cointelegraph stated, “A rate hike by the BOJ could exert downward pressure on risk assets, including BTC.”
The 'Crypto Fear and Greed Index' provided by CoinMarketCap showed a reading of 21 on this day, indicating 'fear.' The index ranges from 0 to 100, with lower values representing 'extreme fear' and higher values signifying 'extreme greed.'
At the same time, Ethereum was trading at $2,949, down 4.15% from the previous day. Ripple was down 4.82%, trading at around $1.88.

yimsh0214@fnnews.com Im Sang-hyuk Reporter