Bitcoin Drops to $85,000 Ahead of Bank of Japan Rate Decision [Crypto Briefing]

[Financial News] Bitcoin (BTC) fell to the $85,000 level on the day before the Bank of Japan (BOJ) announces its key interest rate decision.
According to CoinMarketCap, as of 10:30 a.m. on the same day, BTC was trading at around $85,000, down 2.14% over the past 24 hours. Over the past week, BTC has declined by 5.68%.
In the Korean won market, BTC is trading at approximately 128 million KRW. According to the global crypto price comparison platform Cryprice, the Korea premium stands at 0.90%.
The BOJ will hold a two-day monetary policy meeting starting today and is expected to decide on its benchmark interest rate. The market largely anticipates a 0.25 percentage point increase.
The Nihon Keizai Shimbun (Nikkei) reported, "With inflation remaining above 2% and the trend of wage increases spreading, the reasons for maintaining an accommodative policy are gradually weakening."
Investors are concerned that a rate hike in Japan could trigger a liquidation of yen carry trade positions. The yen carry trade involves borrowing yen at ultra-low interest rates and investing in assets in countries with higher rates to profit from the interest differential. If Japanese rates rise, pressure to unwind existing positions could increase, potentially leading to a surge in sell-offs.
Ryujin Lee, a researcher at KB Securities, noted, "Currently, the market is pricing in only about a 40% chance of an additional BOJ rate hike by June next year. While the likelihood is low, it is important to note that a sharp appreciation of the yen, combined with a hawkish press conference, could result in a limited round of liquidations."
The 'Crypto Fear and Greed Index' provided by CoinMarketCap stood at 22 on this day, indicating 'fear.' The index ranges from 0 to 100, with lower values indicating 'extreme fear' and higher values representing 'extreme greed.'
At the same time, Ethereum was trading at $2,823, down 4.79% from the previous day. Ripple was down 3.91%, trading at $1.85.

yimsh0214@fnnews.com Im Sang-hyuk Reporter